Chongqing's National Day Holiday Spending Rises 7.3% YoY, Boosting Consumer Confidence in Future Economy | Insights

Chongqing- China's recent consumption-boosting policies are already delivering positive results. Chongqing saw clear benefits during the National Day holiday, with total consumption rising 7.3% year-on-year, according to data from the Chongqing Municipal Commission of Commerce on October 7.

On the final day of the National Day holiday, October 7, visitors were seen enjoying leisure time and shopping at the Ring shopping mall in Yubei District, Chongqing. (Photo/Qi Lansen)

According to the Chongqing Municipal Commission of Culture and Tourism Development, 22.68 million domestic tourists were attracted during the National Day holiday, a 14.1% increase from last year. Spending rose 15.8% to 15.4 billion yuan (about USD 2.18 billion), and inbound overnight tourists soared by 140.4%.

In Beijing, nearly 400 consumption-boosting events were held, with 45.73 million visits to 60 key business districts, a 19.7% year-on-year increase. Meanwhile, from September 30 to October 6 in Shanghai, combined online and offline spending reached 67.6 billion yuan, up 3.2% year-on-year. Offline foot traffic in 36 key business districts totaled 34.49 million, a 9.8% increase year-on-year.

Boosted by travel and tourism, China's national catering market showed robust growth during the National Day holiday. Meituan data revealed that dine-in consumption during the first five days rose by 33.4% compared to the same period in 2023. 

Growth across retail, real estate, and stock market

"Our main store received more than 200 tables of guests per day, and across our 13 branches, daily sales have increased by more than 20%," said Xiao Qiang, chairman of Chongqing Gongsuichang Catering Management Ltd. Gongsuichang, a time-honored Chongqing brand, specializes in braised chicken.

The surge in consumption was particularly noticeable in Chongqing's key business districts. Data showed an 18% year-on-year growth in overall consumption in key business areas, including Jiefangbei, Guanyinqiao, and Yangjiaping.

A crowded area near a scenic spot in Yuzhong District, Chongqing. (Photo/Luo Yunxi)

Chongqing's property market also benefited from the holiday momentum. Liu Qiao, marketing manager of Chongqing Meixin Real Estate Development Co., Ltd., observed that property visits more than doubled, and transactions increased by about 50%. 

From October 1 to 5, commercial real estate transactions in the central city surged 51.7% compared to early September's daily average and jumped 90.6% year-on-year.

China's broader economic policies, including reductions in the reserve requirement ratio, policy interest rates, and mortgage interest rates, support this market revival. 

In addition, the stock market also responded positively. On September 30, the A-share market rallied, with the Shanghai Stock Exchange A Share Index surpassing 3300 points.

Niu Yang, general manager of China Dragon Securities Chongqing Yongchuan District business department, reported that during the first five days of the holiday, the number of new investor accounts opened increased by 2-3 times compared to late September. Many other brokerages also reported a surge in account openings through both online and offline channels.

Further reforms set to stabilize economic growth

Recently, 150 billion yuan in special national bond funds were distributed to local governments. Chongqing seized the opportunity by launching an implementation plan to promote consumer goods trade-ins. This initiative aims to enhance the trade-in process for vehicles, electric bikes, home appliances, and kitchen and bathroom products, further unlocking consumer potential.

Experts remain optimistic about Chongqing's economic potential. Yao Shujie, a professor at Chongqing University, stated, "China's consumer market has shown strong resilience in the face of global economic risks." He believes the stimulus measures have already taken effect, with signs of recovery in both the stock and real estate markets. Yao anticipates that further reforms will boost consumption and stabilize economic growth.

Similarly, He Liping, a professor at Beijing Normal University, praised Chongqing's growing international presence. "Guanyinqiao Pedestrian Street has transformed significantly, now offering a rich mix of international brands and a vibrant shopping scene. It's becoming a world-class business district," he observed. 

Looking ahead, He highlighted Chongqing's strategic advantages, such as the New International Land-Sea Corridor, which connects vital transport networks like the China-Europe Railway Express and the Yangtze River Golden Waterway. These strengths position Chongqing to become a global hub for consumer goods distribution. 

"Chongqing has immense potential as an international consumption center," he noted. "The city's unique infrastructure will fuel its growth as a key hub for both domestic and international consumer goods."