From the latest central bank data we learn that deposits deposited in the first half of 2023 in Chinese banks reached the value of over 20 trillion RMB (approx. PLN 11,297 trillion). More than half of these deposits (i.e. 11,296 trillion RMB, i.e. approx. PLN 6,381 trillion, more than Poland's GDP) accounted for the savings of individuals.
If you add to this the balance of household deposits at the end of last year (120 trillion RMB, approx. PLN 67,834 trillion) then we get for 30 June this year the amount of 131,296 trillion RMB (approx. PLN 74,225 trillion). Thus, statistically all Chinese citizen, regardless of age, gender, residence (city, village) had at the end of June 94 200 RMB (approx. 53 208 PLN) savings deposited in 1 of the Chinese banks.
Interestingly, even though banks have been regularly cutting interest rates for respective years.
You can say that the average does not represent the real state, but this average amount is impressive. According to various estimates, the largest deposits are in the hands of 2 to 8% of the population.
People don't just spare. People besides owe the banks money. So, on the 1 hand, we have an increase in the full amount of deposits, on the another hand, a increasing household debt ratio. Today, it is up to 56% in large Chinese cities. This means that more than half of the families in China do not have revenues advanced adequate to save any of them. These families must be indebted in connection with the acquisition of a home or a car and bear the burden of credit associated with it.
After 3 years of turbulence as a consequence of government action in the fight against the Covid-19 epidemic, China's economy does not recover its earlier vigor, the global situation is not encouraging. That's why the local community stopped investing like they utilized to before the epidemic. The Chinese do not presently buy real property so willingly, they do not spend much on consumption, which further slows the improvement of the economy.
Deposits became the first choice of people to defend themselves from losses. The Chinese trust the banks and presume that this is the most safe option available for the future in the face of possible changes.
Young people, despite the mediocre situation on the labour market, find it hard to find satisfactory employment, underattractive wages, rising cost of living, proceed to prosecute a advanced quality of life. It's a group that's willing to usage credit cards. But it is not adequate for consumption to return to its pre-vid strength to play an crucial function among the factors of economical development.
Therefore, as requested by Chinese analysts, stimulating consumption should besides take into account activities specified as creating more jobs, raising the level of income of residents, promoting industrial reforms for greater benefit to the public, introducing tools to let groups with average and low income levels to rise the standard of surviving and, consequently, consumption capacity, reducing mortgage interest rates in order to free up part of consumer demand. These tasks are hard and impossible to accomplish in the short term. But they should be implemented present to make them effective. Sooner than later.
Source:
https://cpu.baidu.com
Author: 梁安基 Andrzej Z. Liang, 上海 Shanghai, 中国 China
Email: [email protected]
Editorial: Leszek B.
Email: [email protected]
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