More Chinese prefer to save than spend
(Shanghai Daily)
Updated: 2006-03-16 09:11

More Chinese residents are holding to their pockets tightly amid a record low enthusiasm for buying property, according to a recent quarterly survey by China's central bank.

About 28.6 percent of 20,000 respondents surveyed said they think "more spending" as the biggest attraction against options such as "more saving", down 0.9 percentage point from a quarter ago, the People's Bank of China said on its Website yesterday, quoting a survey made in 50 cities.

Residents' will to spend will drop to a record low after declining for three straight quarters.

"Two reasons led to a drop in will to spend - residents are worried about the uncertainty of future expenditure and a cooling-off on property and auto purchases," the central bank said.

About 18.2 percent of respondents plan to buy real estate in three months, down 1 percentage point from a quarter ago, also a record low.

China passed regulations last year to curb speculation in the property market and drive out hot money.

Shanghai, the target of the central government's measures, has seen property prices fall since last July.

Residents still prefer savings. About 38.5 percent of respondents said they find "more saving" their best option, 1 percentage point lower than a quarter ago, but still hovering around a high level.

There were 1.01 trillion yuan deposits in the first two months of the year, a rise of 186.7 billion yuan from a year ago.

Meanwhile, more residents are confident of playing the stock market.

About 4.1 percent of respondents chose shares as their major financial assets, up 0.4 percentage point from a quarter ago, putting an end to a drop since the first quarter of 2004.