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Chinese economists hoping to see people increase spending and investments in an effort to ensure further economic growth are still frustrated by the current spending landscape.
A recent survey among 1,059 adults in four major cities, including Beijing and Shanghai, found that bank savings accounts are still the preferred option when it comes to holding money.
Only 10 percent of the respondents have investments in the stock market, while nearly 64 percent choose to stash their money in bank accounts to ensure its safety, according to a joint survey by research firm Horizon Research and website www.horizonkey.com in December.
Around 36 percent of the total respondents in the survey said they make bank deposits on a regular basis, which bolsters their sense of security. But 27.5 percent of respondents admitted they have no plans to save regularly.
The results are presumably disappointing to Chinese economist and government officials, who have been combating a slump in the consumer price index that threatens to slow down economic growth.
Despite stimulative efforts like interest rate cuts, China's savings deposits soared by 17.8 percent on a year-on-year basis to 8.7 trillion yuan (US$1.05 trillion) at the end of last year, 3.1 percent faster than the previous year.
Chinese people's enthusiasm for saving and cautious approach to portfolio investment also make the prospect of a rapid stock market rally dim, while weak sentiment mired major stock indices for the majority of last year and this year.
The survey found that more than 80 percent of those favoring bank deposits are female, who prefer safety and ease of use over anything else in personal finance matters.
Surveyors said the results suggest that no major changes have occurred to the personal finance habits of most Chinese people, who traditionally value security and stability.
(China Daily February 17, 2003)
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