Dunedin Chinese Cultural and Arts Association members (from left) Yi Li, Annie Zhang, Hong Gao, Lei Zhang, Huixin Feng, Ying Sun, Yiwen Zheng and Ping Liu prepare to perform at the 2020 Chinese New Year celebrations at the Dunedin Chinese Garden on Saturday evening. Photos: Linda Robertson

Thousands celebrated the Chinese New Year and the Year of the Rat in Dunedin on Saturday.

Monica Zhang (8) and her mother Susan Xu participate in activities at the Dunedin Chinese Garden.

Several hundred people gathered in the Octagon to watch dragon dancing, before proceeding down Princes St and through Queens Gardens to the Dunedin Chinese Garden.

The crowd enjoyed entertainment which included cultural dances, food stalls, the beating of drums and a fireworks display.

Dunedin city councillor David Benson-Pope and Christchurch-based Chinese Consul Deputy General Zhai Xingfu both spoke at the event.

Dunedin City Council community events adviser (cultural) Vicki Lenihan said about 8000 people attended, the same number as last year.

She said the event was a special evening for the city.

"It’s the community that drives this event, the city really values its Chinese families and their long history in Otago, as well as with Shanghai being our sister city."

Chinese New Year is the largest national holiday in China, home to 1.4billion people.

Andrew Liu (2) and his grandmother Judy Wang, of Dunedin, celebrate the start of the Year of the Rat in Dunedin.