Shanghai residents may see a record amount of new coupons, as the local government announced April 23 that the city will launch a two-month shopping gala starting from May 1.

Participating e-commerce giants Alibaba, Meituan, Suning and Pinduoduo reportedly have agreed to offer 6.7 billion yuan ($946 million) in coupons.

Compared with cash payments, handing out coupons can more effectively shore up consumption, as Chinese people tend to save cash due to their strong saving habit. The May Day holiday, coupled with the coupon programs, are expected to help boost consumption.

Alibaba announced April 23 its full support for the May 5 shopping gala in Shanghai, during which it will save consumers two billion yuan. 

Interactive activities provided by Alibaba for consumers in Shanghai will be released in an intensive manner from early May to June, including scenes and spots – online and offline – for entertainment.

Meituan issued 1.2 billion consumer subsidies, covering dozens of local living services including catering, leisure and entertainment, the beauty industry, hotels, local scenic spots and cultural entertainment.

Suning will launch a "super subsidy" for Shanghai consumers, by issuing more than two billion yuan in coupons during the event.

The coupons will be issued in electronic form, which Shanghai consumers can receive both online and offline.

Pinduoduo intends to invest at least 1.5 billion yuan in subsidies to support the shopping gala. During this period, the e-commerce platform will cooperate with 10,000 Shanghai brands and enterprises to offer integrated online and offline shopping modes by issuing coupons.

Shanghai aims to create a landmark activity in the international shopping city by holding the gala, and achieve a brand new consumer festival for a vast number of businesses and consumers.

The shopping gala is expected to last from May 1 to June 30.

A shopping gala is set to be launched in early May in Shanghai to accelerate online and offline consumption. [Photo/WeChat account: scofcom]