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12:05, 04-Nov-2018
China's lower savings rate indicates stronger domestic demand: former central bank governor
Updated
11:52, 07-Nov-2018
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China's savings rate, which once reached around 50 percent at its peak, has declined by several basis points, indicating stronger domestic demand, Zhou Xiaochuan, China's former central bank governor said on Saturday.
Part of the reason is that China's consumption credit service is growing very fast thanks to the development of fintech, and the younger generations are induced to spend ahead with credit, Zhou said, adding that it could bring an important impact as well as new risks.
Official data showed that the consumption sector remained robust, contributing 78.5 percent to China's economic growth in the first half of the year.