Nearly 6.1 million Hong Kong citizens signed up for the voucher and generated spending in Hong Kong
The Hong Kong government is planning to issue HK$5,000 shopping vouchers to every citizen over the age of 18.
This retail sector stimulus package is expected to cost the government $7.2 billion.
We surveyed 12 citizens to see how they would spend the money
Hong Kong provides HK$5,000, equivalent to RMB4,200, per citizen and permanent resident aged 18 and above.
This is all part of Hong Kong's $7.2 billion strategy to boost its economy. The city's financial authorities estimate that the surge in retail spending will increase its GDP by at least 0.7 percentage points.
Hong Kong's voucher program differs slightly from U.S. stimulus checks, which can be saved or used to pay off debt. In Hong Kong, cash is distributed through four stored-value wallets: AliPay HK, Octopus, Tap & Go and WeChat Pay HK, from which Hong Kongers can only use cash for retail goods.
On August 1, HK$2,000 in retail vouchers were distributed. This has prompted Hong Kongers to flock to stores to reach their spending targets, a prerequisite for obtaining surplus vouchers.
The program operates on a registration basis and is strictly applicable to retail spending within the city. According to a blog post by paul Chan, the city's financial secretary, as of July 18, the government had received more than 6.1 million voucher registrations.
The media interviewed 12 Hong Kong residents about what purpose they used their vouchers.
Cindy Chen, 25, wants an iPhone mini, and she's cashing in coupons to offset the total cost
"I think I'll choose the iPhone mini. I need to replenish about HK$2,300, but that's definitely what I need right now," Chan said.
"The plan will definitely help stimulate consumption in Hong Kong," Chan said. "Of course, for most Hong Kongers, the more cash they give out, the better."
"I haven't saved money for iPad yet, but now that we have a government voucher, I'm going to buy it." It's been a big help to my studies," he said.
Designer Janet Ng Wing Yan used her voucher to buy a pair of Libratone wireless earbuds to replace her problematic wired earbuds
"The voucher came at the right time because I had a problem with my wired earbuds. It's been on my wish list for a while now, and the voucher provides the incentive to buy it," Ng said. She spent nearly HK$1,600 on earplugs and said she planned to use the remaining vouchers to buy birthday presents for her mother and sister.
Canon cameras and photographic equipment are also listed as "must buy" items by some Hong Kong residents.
"I've been planning to upgrade my camera for a long time, and I do use it at work. I don't use cash on beauty products and food anyway," Lin said.
"I haven't had time to look into it yet, but now that coupons are being handed out, it's a good time for me to upgrade my lighting equipment." Sometimes, the lights flicker at the worst and it does interfere with my shooting," he says.
Cheung added that he may also use part of the money to buy the new 85mm portrait lens, which he estimates will bring his voucher limit to a maximum and require him to pay HK$970 himself.
Jacky Choi wants to help his family stay cool this summer — buying a new air conditioning system with a shopping voucher.
"We looked up the price and it would take about HK$12,000 to replace the air conditioner, so this amount will help offset the total cost," Choi said. "Our old air conditioner has been in use for 20 years, and now it's time to buy a new system."
Her family of five merged their first set of vouchers – totaling HK$10,000 – to replace their home air conditioning system.
"Our family's air conditioner is going to be replaced, so we've all agreed to pool our money to replace it," said Winnie, who may use the remaining vouchers to buy a new phone.
Feng Jiajie wanted to buy this pair of Assic shoes for his brother
Feng wants to use part of the cash to buy a pair of volleyball shoes for his 16-year-old brother Jiarong.
"I know my brother loves these red and black sneakers, but we can't afford them. His old shoes were worn out and I wanted to give him another one. It could be a birthday present for him," said Feng, who is pursuing a diploma in engineering. The Asics sneakers, which his brother fancy, sold for HK$1690.
He's considering buying himself a gaming keyboard with his remaining cash.
"It gives us the opportunity to get what we want but can't afford," Feng said. "I don't usually splurge on things like gaming equipment because I earn just enough to get by with my part-time tutoring job."
Marketing manager Jimmy Kwok said he understands why vouchers are distributed in two batches, but thinks the one-time payment makes more sense.
"I bought a mattress for my refurbished room. However, whether or not the voucher is issued, I have to buy it," Guo said.
He added that the Therapedic mattress he bought cost him more than HK$5,800, so he paid the rest out of his own pocket.
Some Hong Kongers choose to cash out their shopping vouchers at supermarkets.
Ms. Yang, 27, who works in the food import industry, plans to spend her cash on groceries. At the top of her supermarket shopping list are premium Japanese scallops and eels.
"I bought something at the supermarket on Monday because having the money to offset the costs, so I was more generous with my budget at the cash register," Yang said, adding that the high-end groceries she planned to buy were things she liked but usually didn't have a budget.
"However, the money will soon run out because I use it to cover day-to-day expenses," Yang added.
Lee said he would probably use the voucher for groceries for a family of three.
"If they give us all their money at once, I might use it to buy an iPhone." But the first round was only 2,000 Hong Kong dollars, and not much money was spent on electronics. I might use it to buy some Häagen-Dazs ice cream," he said.
Hong Kong Seafood Market
"I love cooking, so it would be nice to spend a little extra money on some ingredients for my family to have a good meal," Zhou said. "I want to buy some expensive seafood like crab and lobster, or some beef and chicken."
He plans to use the rest of the money to recharge his Oyster Card (the Hong Kong version of the Subway Card).
"The cost of living in Hong Kong is much higher than you think. HK$5,000 can help us buy some good food, vitamins and transportation costs, and I think that's enough," he said.