More cities are launching consumption coupons to stimulate retail, with measures also being taken by the government.

Hangzhou, East China's Zhejiang Province on Friday launched a digital consumption coupon worth 80 million yuan ($11.9 million). It is the third time the city has launched such a coupon since June.

Chengdu, Southwest China's Sichuan Province also launched a second round of offline consumption coupons on Friday.

Beijing said on Thursday that it will issue 100 million yuan worth of dining coupons through a range of channels in July to boost the recovery of the local catering sector. 

From January to May, Beijing's total retail sales of consumer goods reached 539.19 billion yuan, down 7.7 percent year-on-year, and the catering income was 39.74 billion yuan, a decline of 13 percent.

According to a report by the National Business Daily on Monday, China's 10 major consumption centers, including Shanghai, Beijing and Guangzhou, have collectively issued nearly 7 billion yuan worth of consumption coupons since April. 

With the implementation of a series of policies to promote consumption, the domestic market demand is gradually getting stronger.

Shu Jueting, spokesperson for the Ministry of Commerce, said on Thursday that domestic consumption has maintained the momentum of recovery since May and the government will further stimulate consumption in the second half of this year through methods such as stabilizing bulk consumption and optimizing consumption platforms.

To stimulate auto sales, the government decided in late May to halve the car purchase tax for passenger vehicles priced at up to 300,000 yuan and with 2-liter or smaller engines. The policy will last from June 1 to the end of the year.

Some 1.09 million cars were sold during the first month of the policy, saving about 7.1 billion yuan for car buyers, according to the country's top taxation agency.

With the gradual improvement of the epidemic situation, market watchers said that policies such as consumer coupons and car purchase subsidies will improve residents' consumption ability, which may lead to a relatively fast recovery.

China's factory and service activities bounced back in June, rising for the first time since February, according to official data. It was the latest sign of accelerating recovery in the economy, as the impact of the COVID-19 epidemic weakens and proactive fiscal and monetary policies gradually take effect.

Analysts said more stimulus targeted at consumption is expected to follow in the second half, with support for infrastructure investment as well, which will drive industrial production.