"The companies are happy because it's a business tax write-off, the employees are happy because they get money and they don't have to pay income tax," said Rein. "If it's a state-owned enterprise, it's the laobaixing — the everyday Chinese — who are bearing the brunt of the costs for these illicit incomes."
Zhang was one of 15 scalpers who set up shop with a stool and sign offering to "recycle" mooncake coupons in the pedestrian passageway near Shanghai's East Nanjing Road. The scalpers were buying coupons for half their face value and selling them for 75 percent.
Zhang, who takes three weeks off his job as a hotel lobby manager every year to trade mooncake coupons, complained that the frugality drive had hurt his business.
He said that when he finds a seller, he usually gets just one or two coupons. "It was often eight or 10 coupons last year."
Researcher Fu Ting in Shanghai and video producer Zhang Weiqun in Beijing contributed to this report.
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