In an innovative move to revitalize consumer spending, several Chinese cities have launched special subsidy programs for gold jewelry purchases. These initiatives are creating new opportunities for consumers while supporting local businesses in the precious metals sector.
Zhengzhou’s Pioneering Gold Subsidy Initiative
The Zhengzhou Administrative Approval and Government Information Bureau recently collaborated with local gold brands to introduce a “Gold Jewelry Special Consumption Subsidy” program. This marks the first time the city’s official platform “Zheng Hao Ban” has incorporated precious metals into its trade-in ecosystem.
“Last year I bought a 10g gold pendant, and now with this subsidy program, I came back to exchange it for a new one,” said Qi Qi, a university student in Zhengzhou. The trade-in policy allows consumers to exchange old gold items weight-for-weight while only paying reduced processing fees.
The week-long program (June 7-13, 2025) offers:
- 15% subsidy on all gold purchases
- 67 yuan/gram discount on weighted gold products
- Brand-flexible trade-in policy with waived processing fees
The initiative proved immediately popular, attracting over 12,000 participants within just three hours of launch.
Shanghai Sets Precedent with Gold Consumption Vouchers
Prior to Zhengzhou’s program, Shanghai’s Huangpu district had already implemented similar measures during its “Brilliant Golden Surprise in Dayuyuan” promotion (May 17 – June 2, 2025). The campaign featured:
- Consumption vouchers worth up to 1,000 yuan
- Participation from 10 major jewelry brands
- Discounts reducing gold prices to approximately 705 yuan/gram
The subsidies created significant consumer interest, with some stores reporting:
- 500+ daily customer visits
- 269% year-over-year sales increase
- 1-hour checkout queues during peak periods
Cross-City Gold Rush and Creative Marketing
The localized vouchers have spawned new consumer behaviors, including:
- Professional voucher-buying services
- Cross-city purchases via delivery apps
- Preference for small-denomination gold bars (5g-10g) as investment vehicles
Meanwhile, gold retailers are employing creative marketing strategies:
- Brand collaborations (Chow Tai Seng x KFC, Chow Sang Sang x DIMOO)
- Limited-edition IP products (LABUBU gold charms)
- Low-weight, affordable gold items targeting young consumers
A Shenzhen gold merchant reported selling hundreds of LABUBU-themed gold products (0.1g-0.02g) monthly, primarily to Generation Z customers.
Market Context
These initiatives come amid record-high gold prices, with spot gold trading at $2,292.84/oz on June 9, 2025. Both government programs and private sector innovations aim to maintain consumer interest in precious metals despite the challenging price environmen
Related topics:
