CNBC:

Has the consumption sector seen a clear upward trend? Thank you.

Fu Linghui:

Thank you for your question. Consumption is a matter of great interest to everyone, and has also emerged as a major bright spot in the economy. In October, the consumer goods trade-in program, the National Day holiday, the early launch of the annual Double 11 shopping festival, and the warming stock and property markets were among the major factors bolstering consumer confidence. In October, the growth rate of market sales picked up significantly, the growth of commodity retail sales accelerated, and service retail sales maintained fast growth, with consumption playing a large role in driving the economy. This was mainly reflected in the following aspects:

First, market sales accelerated significantly. In October, total retail sales of consumer goods increased by 4.8% year on year, 1.6 percentage points higher than the previous month. Commodity retail sales increased by a large margin, 1.7 percentage points faster than September. Sales of upgraded commodities registered fast growth. In October, the retail sales of cosmetics, and sports and entertainment goods by enterprises above designated size increased by 40.1% and 26.7%, respectively.

Second, the consumer goods trade-in program played a significant role in boosting market sales. Through trade-in policies in the automobile, household appliance, and home decoration sectors, the retail sales of household appliances, automobiles, stationery and office supplies and furniture by enterprises above designated size contributed 1.2 percentage points of the overall growth of retail sales in October, an increase significantly larger than the previous month.

Third, new types of consumption flourished. The fast development of new business models and forms, such as instant retail and livestreaming sales, boosted online consumption. In the first 10 months, online retail sales of physical goods increased by 8.3% year on year, 0.4 percentage point higher than for the January-September period. Meanwhile, with changes in people's thinking toward consumption, environmentally friendly and health-related consumption is booming, leading to strong growth in sales of relevant commodities. In the first 10 months, sales of NEVs and smart home appliances continued to grow quickly.

Fourth, service retail sales registered fast growth. Increased travel and robust cultural and tourism consumption during the National Day holiday supported the rapid growth of service retail sales. During this year's National Day holiday period, domestic trips and total tourist spending increased by 5.9% and 6.3% year on year, respectively, on a comparable basis; and the number of commercial performance viewers nationwide increased by 13.3%. In the first 10 months, service retail sales surged 6.5% year on year, maintaining a faster growth rate than commodity retail sales. Specifically, retail sales for transportation and information transmission service sectors both maintained double-digit growth.

Overall, market sales accelerated significantly and consumer confidence improved in October, which helped stabilize and boost the economy. However, factors that hinder consumption development still remain, such as limited consumer willingness and purchasing power. Next, we will actively promote high-quality and full employment, support sustained household income growth, give full play to the consumer goods trade-in program, and improve residents' propensity to consume. Meanwhile, we will strive to improve the quality of commodities and services, better satisfy the needs of upgrading consumption, and unleash the potential of consumption, so as to promote sustained and sound economic growth. Thank you.