Lianhe Zaobao:

China is encouraging residents to spend the Spring Festival holiday at their current residing localities to prevent spreading the epidemic. What impact will this measure have on the economy during the traditional Spring Festival holiday? What policies will the authorities adopt to encourage people to stay where they work and live to celebrate the Spring Festival whilst boosting consumption and the overall economy? Thank you.

Zhao Chenxin:

Thank you for your questions. We undertook an immediate analysis as soon as the circular was released, and we will also discuss the issue with local governments and relevant departments in the days to come. Regarding your questions, I would like to introduce some information based on our preliminary analysis. 

This is the first time ever for us to encourage people to celebrate an in-place Spring Festival, we have to keep monitoring and undertaking follow-up analysis into the relevant impact which, I think, could be multifaceted. For example, many are concerned about the impact the policy may have on various industries, such as tourism, transportation, as well as the accommodation and catering sectors. However, we believe it will also have some positive effects.  

First, staying in cities where people work and live can be definitely conducive to epidemic prevention and control, and that will promote sustained economic recovery. If many people decide to stay in place, it will significantly reduce large-scale personnel flow and gatherings. Moreover, people will save a lot of time that they spend on travel or in finding new jobs, which will benefit resumption of business activities and recovery of industries after the holiday.

Second, it can boost consumption in local areas. If a lot of people decide to stay where they work and live, those cities and towns with a relatively large population staying put will see an increase in consumption demand. 

Third, it can promote consumption for recreational activities. Local governments have stepped up efforts to provide convenient services for colorful cultural and recreational activities, as well as excursions. People who spend the holiday where they live and work will feel the warmth there, and at the same time, the consumption during the holiday can be promoted. 

Moreover, the circular also encourages local authorities to consider people's needs during the Spring Festival holiday, and provide various consumption items and social services featuring less contact and gathering. It is expected market vitality will be spurred, and more customized, intelligent, green and high-quality products will emerge during the holiday, which will further connect urban and rural areas, cover online and offline, and in-store consumption services, so as to better meet the public's diversified and personalized consumption demand during the holiday, and unleash the potential for new-type consumption, as well as generate new driving forces for consumption. 

The information I've mentioned above are somewhat based on preliminary analysis. Going forward, we will make a further study with relevant departments, and keep monitoring, studying and analyzing the economic performance and social consumption during the holiday, so as to offer targeted measures in a timely manner. We will ensure that everyone can have a relaxed and happy Spring Festival while working together with the public to promote steady and sound economic and social development, so that every individual can enjoy the fruits of development. Thank you.