Economic Daily has published results of a survey revealing just how much China's urban families are now worth. It showed that by the end of June 2002, the average net worth of a family living in one of China’s cities had reached 228,300 yuan (US$27,500).
The middle ground was firmly held by the 48.5percent of families surveyed with assets worth between 150,000 and 300,000 yuan. Another 34.8 percent came in below 150,000 yuan but no less than 16.7 percent have now broken through the 300,000 yuan barrier.
And how does property figure? The average family has 47.9 percent of their wealth (109,000 yuan) tied up in their house. This compares with the 34.9 percent (79,800 yuan) held in the form of financial assets.
Most families have a broadly similar spread of assets. However better-off families with assets over one million yuan don’t quite follow the pattern. They will likely hold a greater percentage in financial products but a smaller proportion in property.
Turning to the mix of financial assets, on average some 70 percent will be in the form of savings. And China’s city dwellers are a conservative lot for 70 percent of families still just keep their yuan in the bank.
The statistics point to a fundamental shift from a population which once only had enough to cover the expenses of daily living to one which is now able to save and build up personal wealth.
The survey points to an average, annual family income of some 27,700 yuan. For the great majority, the family home will be their only investment in property and savings will be the preferred investment to make provision for children’s education, retirement and illness.
(China.org.cn by Zheng Guihong December 21, 2002)
