Shenzhen Distributes 30 Million in e-CNY to Boost Consumer Consumption 

UTC by Ibukun Ogundare · 3 min read
Shenzhen Distributes 30 Million in e-CNY to Boost Consumer Consumption 
Photo: Unsplash

The People’s Bank of China recognizes e-CNY as a potential tool to advance regional economies. Currently, Shenzhen is one of the three cities in China where residents pay municipal taxes and charges with the e-CNY. 

The city of Shenzhen is planning to distribute 30 million digital yuan (e-CNY) to bolster consumer consumption and help merchants recover. The zero-COVID policy has affected China’s economy, affecting residents. At the same time, many companies have exited China, and more have revealed plans to leave. Amid the crumbling economy across China, the Nansha District in Guangzhou is also offering 10 million in digital yuan to improve the catering and retail economy. Local news outlet Shanghai Securities News reveals the plan for Shenzhen to dispense the e-CNY red envelopes through the Meituan platform.

The report states that Shenzhen will give out the red envelopes through a lottery process. For a smooth princess, the Shenzhen municipal department is working with China Construction Bank, the Bank of China, Agricultural Bank of China, ICBC, Postal Savings Bank of China, China Merchants Bank, Bank of Communications, and WeChat. Participants can win 88, 100, or 128 digital yuan. The envelope distribution started at 10:00 a.m. on the 30th of May. Winners of the e-CNY red envelopes can use it in over 15,000 offline merchants in Shenzhen.

Shenzhen Begins e-CNY Distribution as Covid Policy Affects Economy

The recent move is the latest from Shenzhen in missing coupons to citizens. The city has given out multiple rounds of coupons for citizens’ consumption through various platforms, including Meituan. According to Meituan data, users who shop in Shenzhen have increased remarkably due to consumer coupons. The data shows that the fireworks have gradually returned. In addition, Meituan data highlights the trading uptick in transaction volume of certain business districts between the 29th of April and the 26th of May. Shenzhen Longhua Business District surged by 23.24%, and Science and Technology Park Business District advanced by 15.37%. While Xili Business District pumped 24.21%, Shajing Business District gained 23.89%, and Minzhi Business District grew by 21.56%.

China has been trying to stabilize the economy through both online and offline methods. Many parts of the country have also adopted the distribution of consumer coupons to promote consumption. No less than 20 provinces across China have issued consumer coupons, making over 3.4 billion yuan.

The People’s Bank of China recognizes e-CNY as a potential tool to advance regional economies. Currently, Shenzhen is one of the three cities in China where residents pay municipal taxes and charges with the e-CNY.

Last week, Chinese Premier Li Keqiang had an emergency meeting with top officials of the Communist Party. The Premier saw the need for the rare kind of meeting to discuss the impacts of the nation’s coronavirus policy on the economy.

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Ibukun Ogundare

Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.

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