As China celebrated the 75th anniversary of the founding of the People’s Republic on October 1, the nation was enveloped in a festive atmosphere that invigorated both spirits and markets. The National Day holiday not only marked a significant milestone but also showcased China’s robust consumer confidence and economic vitality.
In the weeks leading up to the celebrations, the central government introduced a series of macroeconomic policies aimed at stimulating the consumer market. Measures such as lowering mortgage rates for existing homes, reducing the reserve requirement ratio, and implementing new tools to stabilize the stock market have significantly boosted consumer confidence. For the first time, there was an explicit proposal to promote the stabilization and recovery of the real estate market, emphasizing the value of household fixed assets.
The policy encouraging the replacement of old consumer goods with new ones has gained substantial momentum, leading to a surge in home appliance sales. During the holiday, retail giants like JD and Suning reported remarkable increases. JD experienced a 67 percent year-on-year rise in home appliance sales, while Suning saw over a 200 percent increase in nationwide store traffic, with orders for their old-for-new program up by 132 percent compared to the previous year.
The National Day holiday has always been a peak season for travel, and this year set new records. Preliminary statistics from the Ministry of Transport indicate that between October 1 and 7, the total number of inter-regional trips is expected to reach approximately 2 billion, marking a daily average year-on-year increase of 4.1 percent. This unprecedented travel enthusiasm reflects not only the desire of residents to explore but also the effectiveness of policies aimed at boosting domestic tourism.
These developments highlight the dynamic nature of China’s economy and the positive impact of targeted policies on consumer behavior. The strong consumption and travel enthusiasm during the National Day holiday are indicative of a broader trend towards economic recovery and growth in the region.
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Strong consumption and travel enthusiasm during National Day holiday
cgtn.com
