Subsidy rush overwhelms Beijing’s stimulus


The disruptions are putting Beijing at a crossroads as it looks for a longer-term fix to a crisis of confidence among households. — Bloomberg

BEIJING: China is testing the limits of what its consumer stimulus can accomplish by subsidising purchases of select goods, fuelling a shopping spree that boosted retail sales growth to the strongest in more than a year but threatening to overwhelm authorities even in the richest regions.

Consumer participation in the home goods trade-in programme has seen provinces quickly running out of funds the national government has so far distributed to pay for the subsidies.

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