China's Chongqing unleashes fresh financial stimulus to boost consumption

Chongqing, a major city in southwest China, has been leveraging financial tools to fuel consumption, with an initiative bringing together dozens of financial institutions to unveil new measures aimed at stimulating consumer spending.

On Wednesday, the Financial Support to Boost Consumption Action Conference was held in Chongqing's Nan'an District, in which 41 financial institutions jointly launched an action plan and released detailed measures to boost consumer confidence and their willingness to spend. 

The city's financial regulator said it will continue to guide financial institutions to ramp up support for consumer spending. It will allocate at least 1.6 billion yuan, or around 224 million U.S. dollars worth of resources designed for reducing costs and providing incentives for consumers in 2024, which is expected to drive individual consumption loans to surpass 2.5 trillion yuan (about 350 billion U.S. dollars) for the year.

"As of the end of the third quarter, the balance of loans for consumption use in Chongqing's banking sector had reached 628.54 billion yuan (about 88 billion U.S. dollars), up 21 percent year on year.  This resulted in direct savings of over 1.2 billion yuan for customers, contributing  a 3.8-percent increase to  the city's total retail sales of consumer goods, which is 0.5 percentage points higher than the national average," said Jian Weibo, deputy director of the No.2 Non-bank Services Section under Chongqing Municipal Financial Regulatory Bureau.

Local authorities say campaigns in the first three quarters in support of green renewals and upgrades in consumer goods have been extremely successful.

"In the next phase, we will optimize the allocation of financial resources, offer more diverse financial products, strengthen the support for consumption on both the supply and demand sides, and guide financial institutions to help boost consumption," said Jian.

China's Chongqing unleashes fresh financial stimulus to boost consumption

As China's elderly population grows, shopping malls in Shanghai have actively adapted part of their services to cater to the needs and preferences of elderly consumers, tapping into silver-haired consumer market.

This trend reflects the city's efforts to enhance elderly care services amid the population aging. By the end of 2023, people aged 60 and older reached 5.68 million in Shanghai, representing a whopping 37.4 percent of the city's total population.

A shopping mall on the downtown Nanjing East Road pedestrian street has opened a dedicated club for senior citizens, offering a diverse range of activities from the operation of health workshops to traditional handicraft classes.

"I gain a lot every time I come here. I can participate in various club activities and also exchange knowledge and everyday life hacks with others," said Fu Meilin, an elderly resident.

The mall houses nearly 60 time-honored brands, along with dining and entertainment options suited to senior citizens.

Another business district in Shanghai's Putuo District has adopted a different approach, focusing on attracting retirees during weekdays while catering to younger shoppers on weekends.

Restaurants offer affordable off-peak meal deals priced under 100 yuan (about 13.88 U.S. dollars), attracting a large number of senior customers.

To ensure a convenient and enjoyable shopping experience for the elderly, many shopping malls have conducted age-friendly renovations, including providing comfortable seating areas, accessible restrooms, and consumer guidance services for the elderly shoppers.

Driven by the population aging, China's "silver economy" has shown vast growth potential, with the market currently estimated at around seven trillion yuan and projected to reach a 30 trillion yuan by 2035.

Shopping malls in Shanghai adapt to cater to growing 'silver economy'