Home > Uncategorized > Li: China Household Finance Survey – Business Insider

Li: China Household Finance Survey – Business Insider

November 5, 2012 Leave a comment Go to comments

The dynamics of the Chinese economy continue to be a mystery to most people.

One thing the world assumed about China was that wealth was distributed pretty uniformly among the population with some outliers.

However, a new survey of over 8,000 households conducted by Professor Li Gan of the Southwestern University of Finance and Economics showed that wealth distribution was much more skewed than we thought.

Gan found that 10 percent of households control 86.7 percent of total wealth, 84.6 percent of total household assets, 74.9 percent of savings, and 57 percent of total disposable income.

“Perhaps the key conclusion is that the skewed wealth distribution highlights one reason for China’s continuing high savings rate,” wrote CLSA analyst Chris Wood via ValueWalk. “This is that poor households do not have the means to consume while, as in the West, the rich have already maxed out on their consumption.”

via Li: China Household Finance Survey – Business Insider.

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