Many products are on sale at a supermarket in Hangzhou after the local government launched coupon policies to encourage consumers to spend more. [Photo/zj.zjol.com.cn]

A stream of Hangzhou residents are flocking to malls to shop after the city launched a coupon policy to stimulate consumption.

According to statistics released by the Hangzhou commerce bureau, the local government had cashed 29.83 million yuan ($4.2 million) in subsidies for coupons by 4 pm on March 29, prompting residents to spend a total of 453 million yuan.

"I intended to buy only a cup of coffee at Starbucks. But to be eligible for the coupon, I had to spend more, so I bought a croissant," said Wu Fen, a white collar worker in Hangzhou.

According to statistics from Intime Department Store in Hangzhou, in the past week there was a boom in the number of shoppers. The past weekend saw a nearly 50-percent increase in the number of shoppers over the previous three weekends in March.

A total of 14 stores belonging to Hangzhou Freshhema, a new retail supermarket, participated in the coupon activity. By March 29, sales at physical stores had increased 47.3 percent and online sales had increased 50.5 percent.

Many supermarkets are also offering discounts to attract more customers, and the day the Hangzhou government released the coupons, the number of shoppers at the Hangzhou Wal-Mart increased by 30 percent.

According to a Wal-Mart representative, the coupons apply to all products at the store as long as costumers pay with Alipay.