Communist China Resident’s Deposit Willingness increases Amid Declining Income

According to Urban Depositor Survey Report Q2 2022 issued by People’s Bank of China (PBOC) last week, Chinese residents’ deposit willingness continues to hike as 58.3% of the respondents prefer to “save more,” 3.6% up from the previous quarter. This is also the Chinese residents’ 5th consecutive quarter of increasing deposit willingness.

Meanwhile, the income sentiment index for this quarter is 44.5%, 5.7% down from the previous quarter. Specifically, 10.8% of respondents felt their income “increased” which was a 3.7% decrease compared to last quarter, while 67.6% of the respondents saw “not much income change,” down 3.9% from the previous quarter. The income confidence index dropped 4.3% since last quarter, to 45.7.

The resident’s employment expectation also seemed to be recessive. This quarter, the employment sentiment index slid 6.9% from previous quarter, to 35.6%. The employment expectation index dropped to 49.4%, down 6.0% from previous quarter.

These data reflect that the Communist China economy is still struggling with big challenges. The state-funded Chinese media, Xinhua Agency reported that Communist China Primer Mr. Li Keqiang held a meeting in Fujian on last Thursday with main coastal provincial leaders in South East China. Mr. Li highlighted that the current economy is in a process of recovery, which is very difficult and challenging. Li also called that the foundation for recovery is unstable and required more hard word for stabilization.