Beijing’s generous subsidies to boost consumption are having the desired effect, as consumers seized the opportunity to replace a range of gadgets and household appliances.

Consumers, who have been waiting on the sidelines since the start of the year anticipating bigger government handouts, have gone on a shopping spree during the Lunar New Year holiday, even though the subsidy level has been kept at the same level as last year.

For example, sales of smartphones in Shanghai have jumped more than 90 per cent since January 20 from the same period last year, while sales of tablets surged by more than 200 per cent, according to data from Suning.com, one of mainland China’s largest home-appliance chains.

“The jump in sales of white goods and gadgets is a result of the government’s determination to drive economic growth,” said Eric Han, a senior manager at Suolei, an advisory firm in Shanghai. “But it is unclear whether the retail momentum can be sustained after the holiday.”