(Yicai Global) Aug. 3 -- Shanghai posted the highest retail sales of consumer goods, which includes both online and offline sales, in the first half among Chinese cities, and Chongqing in southwest China clocked the fastest consumption growth.

Consumers spent CNY904.8 billion (USD139 billion) in Shanghai in the six months ended June 30, according to the latest statistics. This was a 30 percent jump from the same period last year and an average two-year growth rate of 7.6 percent.

Chongqing, which was in third place with CNY689.3 billion, set the fastest pace with an average two-year growth rate of 9.8 percent. Its retail sales in the first half were up 29.9 percent from the year before.

The development of the China (Shanghai) Pilot Free Trade Zone has boosted consumption in Shanghai in recent years, Ding Changfa, associate professor with the Department of Economics at Xiamen University, told Yicai Global. As a key part of the Yangtze River Delta city cluster, Shanghai is increasingly attractive to consumption in the region.

Chongqing has a population of over 30 million and is developing rapidly, attracting a huge inflow of people to its main urban area, said Peng Peng, chief executive of the Guangdong System Reform Research Society.

Beijing was in second place and Guangzhou came fourth. All top ten cities had retail sales of consumer goods of more than CNY300 billion (USD46.4 billion).

Chengdu in southwestern Sichuan province came fifth with sales of CNY457.6 billion. This is a 24 percent year on year increase and a two-year average growth rate of 7 percent.

Chengdu has the biggest population in western China and spending power is on the rise due to the rapid urbanization of inland areas, said Niu Fengrui, a researcher at the Institute for Urban and Environmental Studies at Chinese Academy of Social Sciences.

The first-tier city of Shenzhen dropped to sixth place. It struggled with an outbreak of Covid-19 in June, which would have had an impact on consumption, Niu said.

Editor: Kim Taylor