Beijing accelerates stimulus measures after May retail sales fell 0.6%, the first decline since the pandemic.
China announced a third tranche of 62.5 billion yuan in trade-in funds, aiming to bolster consumer spending after weak retail data. The move follows a 0.6% drop in May retail sales, the first contraction since the pandemic, signaling sustained stimulus efforts.
Previous tranches totaling 125 billion yuan have driven over 820 billion yuan in sales, though analysts note diminishing returns. The program is seen as a demand floor amid soft underlying retail trends, with implications for commodities and industrial metals.
Goldman Sachs previously cited China’s demand weakness as a key reason oil prices have not breached triple digits despite Middle East supply risks. A pickup in consumer durables could support energy and metals markets.