Shoppers targeted in bid to boost spending

"Theoretically speaking, cash is a more direct and simple stimulus. Some countries across the world have adopted this method to boost consumption, because residents have been less willing to save money. People in these countries will spend the money on consumption after they receive it," he said.

However, in China, as people generally have a stronger sense of saving, distributing e-vouchers will be more effective than cash in stimulating consumption, he said.

The measures have clearly been effective. As of April 26, four days before a sixth round of distribution in Hangzhou, government-funded vouchers worth a total of 380 million yuan had been used in the city, generating 4.2 billion yuan in consumer spending, according to Zhu, from the commerce bureau.

On May 15, led by professor of economics Justin Yifu Lin, the National School of Development at Peking University conducted a study into the issuance of e-vouchers.

A report released by the university said the vouchers help when local governments try to restore economic order, and digital technologies play an important role in improving their distribution.

The report also said economies in areas where vouchers have been issued to encourage consumption are recovering faster than those elsewhere, especially the service sector.

Lin, who is also honorary dean of the university's National School of Development, said vouchers are helpful in "ensuring the healthy operation of families and enterprises". He called on governments to adopt such measures and to step up investment.

Zhao Ping, a researcher at the Academy of China Council for the Promotion of International Trade, said the use of e-vouchers is still limited because some sectors, such as culture, sports and entertainment, have not resumed operations under COVID-19 prevention and control measures. However, it is hoped that vouchers can soon play a bigger role.

"Consumers are still cautious about going to venues with crowds," she said, adding that as the pandemic loosens its grip nationwide, more people will return to work and enterprises will resume production. As a result, the role the vouchers play in bolstering consumption will become more apparent.

Wang, the vice-minister of commerce, said distributing vouchers is a positive move and has been conducive to propping up consumption.