According to media reports, the most important promotional event “618” in the first half of this year is in full swing. However, in some regions, the “national subsidies” have been suspended or adjusted. For instance, the news that “Chongqing has suspended national subsidies” has attracted attention on social platforms. A notice on the “Chongqing Consumer Goods Trade-in Page” of Huifan App shows that the subsidy funds for 27 subcategories such as green and intelligent appliances, home decoration, and kitchen and bathroom renovations have been exhausted. Applications for consumption vouchers and qualification codes will cease on June 2nd and 3rd. The “national subsidies” page on e-commerce platforms also indicates that during the upgrade of the event, “national subsidy benefits cannot be claimed or used”.
Not only in Chongqing, but also in the Jiangsu region, the “national subsidy” for household appliances has recently been suspended. A relevant official from the Jiangsu Provincial Commerce Department responded that currently some platforms are undergoing rectification or system upgrades.
After the adjustments are completed, consumers can normally receive and use the subsidies, and each platform and merchant will implement quota management. At the same time, it was pointed out that starting from June 1st, both online and offline for the “national subsidy” project in Jiangsu Province will adopt a quota system, and the activity will continue until the end of the year. In Guangdong, there have also been cases where smart home appliances and home furnishing products in cities such as Guangzhou, Foshan, and Zhanjiang cannot receive subsidies.
Morgan Stanley analysts stated that the recent suspension of national subsidies in certain regions is due to the fact that approximately 60 billion yuan in appliance subsidies have been spent from January to May (compared to 45 billion yuan spent from August to December last year), completing about half of the annual target. It is expected that this is the first phase of the suspension, and the second phase may be resumed in the second half of the year. Choosing to suspend at this time might be because the “618” event itself offers industry discounts, and national subsidies may have a significant impact on the price system.
The macro analyst from CITIC Securities pointed out that due to fiscal pressure, certain regions suspended the subsidy for trading old appliances for new ones after the national subsidy funds were exhausted.
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