Additional support to consumers worth at least 1 trillion yuan advisable, says expert

In a recent interview with China Perspectives, Zhang Ming, deputy director of the Institute of Finance & Banking at the Chinese Academy of Social Sciences, said that compared with the past, it is true that the probability of the Chinese central government providing direct support to low and middle-income groups has increased notably.

Zhang suggested that the central government issue consumption vouchers, with a size of no less than 1 trillion yuan ($141 billion) — if the measures are to generate a notable effect.

Previous economic stimulus policies focused on supporting business operations so that improved business conditions could translate into growing household income. Yet, the policy transmission now seems to have met some difficulties, said Zhang, who is also deputy director of the National Institution for Finance & Development.

"At this time, directly backing households can revitalize people's expectations and confidence and bolster household consumption," he said, adding that experiences from developed economies have proven that issuing consumption vouchers to households can bear good results.