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BIZCHINA / Biz Life
Save more as interest rises
By Hao Zhou (chinadaily.com.cn)
Updated: 2007-09-21 17:13
Savings drop has slowed down evidently amid continuous increases in the
interest rates, according to a survey conducted by the People's Bank of
China in 50 Chinese cities, the Shanghai Morning Post reported.
The survey results, released yesterday, showed a growing number of
Chinese citizens, 44.9 percent at the moment, think the current deposit
interest rate is "moderate", after the central bank lifted the benchmark
interest rates continuously in July and August this year, and also
lowered the interest tax rate.
Related readings:
?Morgan Stanley: China may raise interest rate despite US cut
?Interest rate hikes an effective economic tool
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Citizen's willingness to deposit money in banks has dropped for four
quarters in a row since the third quarter last year. However, the
interest hike slowed the decline.
Between the first and the third quarter this year, the proportion of
citizens willing to deposit reduced 5.6, 4 and 0.9 percentage points
respectively compared with a quarter before, suggesting the pace of the
slowdown has significantly diminished.
Nonetheless, only 3.5 percent of the surveyed were "satisfied" with
current consumer goods prices level, down 22.5 percentage points compared
with the proportion in the second quarter.
Meanwhile, some 61.3 percent, 11.1 percentage points higher than a
quarter before, predicted the consumer goods prices will continue to
surge in the last quarter this year.
Additionally, citizens were more passionate in fund investment rather
than in stocks directly. The survey recorded a 44.3 percent high of the
citizens considered fund investment more profitable than bank savings. By
contrast, only 25.3 percent would rather put money in banks.
During the third quarter, 25.4 percent of citizens held funds as the
major stake in their family financial structure. At the same time, 50.4
percent had banking deposits as their top financial asset, compared with
70.4 percent in the first quarter last year.
The survey also suggested more citizens in big cities like Beijing and
Shanghai wanted to purchase houses in the fourth quarter. The proportion
went up 1.5 and 4.5 percentage points respectively in Beijing and
Shanghai compared with the third quarter.
(For more biz stories, please visit Industry Updates)
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