Spending Vouchers To Stimulate Economy: Paul Chan

Financial Secretary Paul Chan said the arrival of a second round of government consumption vouchers on Sunday woud provide some stimulus for a local economy that's in need of urgent support.

Writing on his official blog, Chan said promotions offered by electronic payment platforms and stores, as well as the extra money to be spent by consumers, will give the handout a multiplying effect.

He said while the economy shrank for a second quarter in a row, private consumption was relatively stable, even though it was lower than expected.

But the finance chief pointed out that retail sales grew by 11.7 percent in April when the first batch of spending vouchers was distributed, reflecting the positive impact to the market from the vouchers and the fact Covid was under control.

Some 6.2 million people received a HK$2,000 voucher on Sunday, with a further HK$3,000 due later in the year.

Around 150,000 people who newly arrived in Hong Kong or who recently achieve permanent residency have become eligible for the vouchers, and they will be able to get the full HK$10,000 in phases.