A growing number of mainland residents plan to
increase their savings as opposed to increasing spending, a quarterly
survey conducted by China's central bank suggests.
About 36.8 percent of 20,000 respondents surveyed said "more saving" is
a better option at present than "more spending," up 2.2 percentage points
from a quarter ago, the People's Bank of China said on its Website
yesterday. The survey was conducted in 50 cities.
The increase in the number of people planning to save more ends two
straight quarterly decreases, the report said.
"The new interest rate hike had a big effect on residences' trends for
more saving," the central bank said.
On August 19, the central bank raised its deposits rates, the first
hike in almost two years, with the one-year rate rising from 2.25 percent
to 2.52 percent.
About 68.2 percent of respondents said they have deposits at banks, up
1.7 percentage points from the previous quarter.
The rate hike has also had a negative effect on the real estate market.
The central bank raised lending rates on August 19, the second hike in
less than four months. Though it also allows commercial banks to offer a
15 percent discount on individual
mortgages, up from the previous 10 percent discount, the
hike still hit real estate consumption.
About 17.5 percent of respondents said they plan to buy property in the
next three months, down 0.1 percentage points from a quarter ago.
Respondents also said savings accounts are more attractive than stocks.
Only 12.9 percent of survey respondents said they plan to buy more
stocks, down from a record high of 15.8 percent in the second quarter.
A report from the Shanghai branch of the central bank earlier this
month showed that yuan-denominated deposits in local banks rose in August
following the interest rate increase.