Experts expect policies to expand domestic demand and boost consumption

Policies are expected to continue to intensify efforts to expand domestic demand and boost consumption, experts said at a first-quarter data analysis event held by China News Service in Beijing recently.

Fiscal policy should transition from an emphasis on investment to a balanced emphasis on both investment and consumption, shift focus from enterprises to households, and prioritize demand over supply and production, said Luo Zhiheng, chief economist at Yuekai Securities.

"Improvements in public welfare and social security can alleviate residents' concerns over healthcare, elderly care and housing, thereby naturally stimulating consumption. Targeted groups could receive phased subsidies, such as gradually increasing pensions for urban and rural residents, and providing temporary assistance to workers laid off due to tariff-related shocks in affected regions and industries," said Luo.

Trade-in programs could extend the scope to the services sector, with services consumption offering greater sustainability compared to physical goods like cars and televisions, Luo added.

"I believe that public enthusiasm for household appliance upgrades will continue to rise, with the further implementation of policies to expand domestic demand and stimulate consumption, including trade-in programs," said Yang Daoling, division head of the big data development department of the State Information Center.

The relevant demand is expected to be further unleashed, maintaining stable and positive growth momentum in the home appliance consumption market, which will provide strong support for continuously stimulating consumption vitality and unleashing domestic demand potential, said Yang.

"Local governments should enhance public services and improve infrastructure, to stimulate demand in the property sector," said Ni Pengfei, director of the Global Urban Competitiveness Research Center for City and Competitiveness of Chinese Academy of Social Sciences.

Local governments can leverage local resources to provide high-quality public services for residents, attracting them to purchase housing, thereby stimulating property demand, Ni said.

"Industrial upgrading in key sectors should be focused in the medium to long term. For instance, innovative structural monetary policy instruments could be developed to intensify support for technology innovation, green industries and consumption sectors," said Zhou Jingtong, deputy head of the research?

Tailored policy tools targeting property, including reducing commercial housing inventory, should be implemented to sustainably promote market stabilization and foster positive momentum in the property sector, said Zhou.