China has released the much-anticipated stimulus policy to boost the upgrade to energy-saving home appliances before the arrival of Chinese New Year, Yicai.com reported.

The government will offer subsidies to consumers who buy green and intelligent home appliances.

Local governments are also encouraged to provide subsidies to consumers who sell their old household appliances including refrigerators, washing machines, air conditioners, TV sets, range hoods, water heaters, cookers and computers.

However, analysts remain concerned about whether the new policies can really stimulate consumption. “The policies are more about guiding, encouraging local governments to offer support voluntarily,” said Wen Jianping, chairman of AVC.

Wen expects that some cities with sufficient financial resources such as Shenzhen, Hangzhou, Beijing, and Guangzhou, may see a better outcome, as the middle class in these places are relatively concentrated, with strong spending power.