by FAN Yicheng

Shanghai's consumer market gained momentum in the third quarter, supported by local stimulus and a rebound in inbound tourism, official data showed on Wednesday.

Retail sales rose 4.3% to 1.23 trillion yuan (about US$170 billion) in the first nine months, up from 1.7% in the first half, as spending on appliances, furniture, EVs and telecom gear jumped 9%–28%, the Shanghai Municipal Statistics Bureau said.

Analysts said the recovery was driven by government-backed "trade-in" subsidies and city-issued digital coupons. LU Ying of Guotai Haitong Research Institute said the 500 million yuan in vouchers for dining, travel and entertainment generated over three times the value in spending.

Festivals such as "Shanghai Summer" drew 163 million visitors over three months, generating about 313 billion yuan in spending, while hospitality and catering revenues also improved. Night-time spending rose 3.3% to 88 billion yuan between June and September, according to Fudan University's Big Data Lab.

"The recovery is driven by both targeted policies and improving external conditions," Lu said, noting that Shanghai has linked subsidies to new consumption experiences such as night-time discounts, cultural fairs and street markets.

Inbound tourism strengthened the recovery, with 6.37 million overseas visitors in January–September, up 37%, while tax-free sales jumped 84%, the highest among Chinese cities.

FENG Xingdong, a professor at Shanghai University of Finance and Economics, said policy support remains key and urged Shanghai to extend consumer subsidies, promote links between commerce and culture, and tap the aging consumer market to sustain the recovery.