The growth of household deposits in China reveals the importance of saving money and the changing tr

Mondo Education Updated on 2024-02-22

In recent years, China's household savings have shown a significant growth trend. In the four years from the beginning of 2020 to January 2024, Chinese households added 58 percent of their net deposits in banks24 trillion yuan, this figure not only set a historical record, but also 82% of them are time deposits, and the total amount of new deposits in the past two years has even exceeded the sum of the previous decade. Despite the market environment in which many small and medium-sized banks have lowered their deposit rates, the growth of household deposits in China has not been affected by this, such as the three-year lump sum deposit rate of China Construction Bank, which has increased from 2.2 in September 20226% to 1. in December 202395%, but residents' enthusiasm for deposits remains undiminished.

According to the research of Industrial **, this super-trend deposit growth is not simply due to the decrease in consumption, but a profound adjustment of residents' asset allocation strategy. The report noted that in the third quarter of 2023, deposits increased by 57 trillion yuan, and at the same time, the reduction in the purchase of wealth management products also increased deposits by 45 trillion yuan. This phenomenon is similar to the change in the asset allocation structure of Japanese residents in the 90s of the last century, when the proportion of real estate investment by Japanese residents shrank significantly, while the proportion of safe and stable assets such as cash, deposits and insurance increased significantly.

At the same time, the deposits of government agencies and organizations also showed a steady growth trend, with a cumulative net increase of about 587 trillion yuan, showing that the first organs, enterprises and institutions have a more prudent attitude towards capital reserves and financial management, even if the current deposit-based appropriation has also shown a trend of transformation into time deposits.

The significant increase in deposits, both at the individual and group level, highlights the multiple benefits of saving in today's economic environment: first, it provides financial security and the ability to respond to unexpected events; the second is to adapt to the low interest rate environment and achieve wealth preservation and appreciation by adjusting asset allocation; The third is to support the implementation of macroeconomic policies and help the country's economy run smoothly. With the changes of the times and the evolution of the financial market, the importance of saving money as the most basic way of financial management has not diminished, but has been further demonstrated in the new economic situation. **10,000 Fans Incentive Plan

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