Spurred on by the depositing of year-end bonuses with banks, Chinese households spent less and saved more in January. Savings increased by RMB 5.41 trillion ($851 billion) in January, reports Caixin. This number is up around RMB 4 trillion year-on-year and distinctly higher than the average level.
Meanwhile, non-financial business deposits decreased by RMB 1.4 trillion. Analysts at CIB Research attributed the increases to year-end bonuses paid to employees ahead of the Lunar New Year. Continuing pandemic outbreaks and the sluggish housing market have also dampened people’s consumption, said Zhong Zhengsheng, chief economist of Ping An Securities.
A survey by the central bank showed that 51.8% of households preferred to save more during the fourth quarter, 1% higher than in the previous quarter. The survey also showed that 24.7% of households said they preferred to spend more and 23.5% would invest more.