Vegetable markets in Hangzhou, Zhejiang province, are encouraging people to use e-vouchers. China Daily

"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.

Tourism discounts

Pan suggested that the aim of the vouchers should be to benefit people on medium and low incomes and industries severely affected by the pandemic.

For example, in Zhejiang, the provincial culture and tourism department decided to issue vouchers worth a total of 220 million yuan to boost tourism, which has been seriously hit by the outbreak.

Culture and tourism vouchers offer discounts for visits to scenic areas and stays at local hotels.

Shen Yan, a professor of economics at Peking University, suggested that based on the institution's report, a national voucher distribution policy be drawn up and digital technologies used to ensure transparency, efficiency and fairness.

"Through studying voucher programs nationwide, we believe that such incentives will be good to protect the high-quality development of the Chinese economy in the long run," she said.

Zhao, from the Academy of China Council for the Promotion of International Trade, while confirming the role of e-vouchers in boosting the economy, said they are not a "once and for all" solution.

She said the vouchers are backed by administrative funding, and to avoid adding to their burden local governments should assess their financial situation carefully before deciding to issue them.

Wang Xianqing, chairman of the Guangdong Society of Commercial Economy, said he believes that local governments fully consider the characteristics of different industries and local consumption needs before deciding to issue e-vouchers. As a result, the vouchers can spur industrial development and boost consumption.

"Issuing the vouchers has proved effective in creating a good atmosphere for consumption and guiding people to spend in specific sectors," he said.

"But local governments shouldn't exaggerate or rely too much on this effectiveness," he said, adding that they should switch their attention from raising consumption in the short term to working out long-term policies to increase people's willingness to spend.

Capital welcomes move

In Beijing, consumers and business operators have hailed the decision to issue e-vouchers to residents.

On June 3, authorities in the capital announced they would offer vouchers worth a total of 12.2 billion yuan and distribute them through several rounds.

The municipal government said the policy would be in effect from June 6 to the National Day holiday in early October.

However, it was announced on Monday that all offline promotional activities would be suspended due to new COVID-19 cases discovered at the Xinfadi Wholesale Market in the southwest of the city.

This month alone, the vouchers are being distributed in four batches-on June 6, June 13, June 20 and June 27.

The first batch on June 6 was distributed through e-commerce company JD and an official WeChat account. The vouchers can be used at restaurants and retailers in Beijing, as well as to buy products online.

Data compiled in the days following the release showed the efforts were paying off.

Chaoyang Hopson One, the second-largest shopping center in Beijing, occupying an area of 190,000 square meters, held a series of events related to the vouchers and helped shops promote such activities. The vouchers can be used in some 80 percent of shops in the mall.

During the weekend, the number of visitors to the mall returned to the level seen at this time last year.

Zhang Xi, chief branding officer for the mall operator, Hopson Commercial Properties, said sales revenue at all premises owned by the group rose after the government started offering the vouchers.

"We hope more activities like this will be held, and we will actively cooperate with the government to boost consumption," Zhang said.

The Beijing Department Store in Wangfujing saw rises of 30 percent and 28 percent, respectively, in visitors and revenue on June 6, compared with the previous day. The number of visitors to the store on June 6 was about 85 percent of the level seen on that date last year.

The vouchers have played an important role in boosting consumption, according to JD. On June 6, some 39 percent of them were used in restaurants in Beijing and 61 percent in physical stores, it said.

Ding Leilei, a young engineer in the city, who always orders takeout for lunch, found that he could obtain a 10-yuan voucher when he paid for his food.

"It makes me feel good," he said. "Who would be unhappy about enjoying the same product for less money?"

To encourage consumption, Fengtai is just one of many districts in the city that have staged a range of events to attract consumers.

On June 6, He Hong, a flower arranging enthusiast in Fengtai, took part in a special promotional event staged by the district government to boost consumption.

"Dressed in traditional Chinese costumes, we had a lesson about flower culture and arrangement at a cultural center, which I greatly enjoyed," she said. "I would like to spend money on such services, as well as on beautiful flowers. Plus, I've got the coupons from the government."