{"id":1928935,"date":"2023-05-11T12:11:47","date_gmt":"2023-05-11T16:11:47","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/analysis-chinas-deposit-pile-stands-in-the-way-of-recovery\/"},"modified":"2023-05-11T12:15:57","modified_gmt":"2023-05-11T16:15:57","slug":"analysis-chinas-deposit-pile-stands-in-the-way-of-recovery","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/analysis-chinas-deposit-pile-stands-in-the-way-of-recovery\/","title":{"rendered":"China&#8217;s large deposit reserves hinder recovery."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">12<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fanalysis-chinas-deposit-pile-stands-in-the-way-of-recovery%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1928935&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>China&#8217;s Savings Mountain Hinders Post-Pandemic Growth<\/h2>\n<p>China&#8217;s efforts to boost its economy by encouraging spending are being hindered by depositors who are hesitant to invest in anything but the safest options. The latest move to cut top deposit rates has only led to a rush into other deposit products and government debt, indicating that caution runs deep. Despite expectations that savings would pour back into stocks and consumption once virus controls were lifted, term deposits have swelled, making it unlikely to happen.<\/p>\n<h3>The Numbers<\/h3>\n<ul>\n<li>Total yuan deposits stood at a near-record 274 trillion yuan ($40 trillion) at the end of April, dwarfing the market capitalisation of the mainland stock market, which is 84 trillion yuan, and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/its-official-trump-crushes-record-for-largest-gdp-increase-in-us-history-3rd-quarter-gdp-up-33-1\/\" title=\"IT'S OFFICIAL: Trump Crushes Record for Largest GDP Increase in US History -- 3rd Quarter GDP Up 33.1%\">gross domestic product<\/a>, at 121 trillion yuan.<\/li>\n<li>Personal deposits are also at a record, and PBOC data showed fixed-term deposits, which can offer as little as 1%, are growing particularly fast.<\/li>\n<li>They rose 8.9% from January to March at large-sized banks to 25 trillion yuan and were up 11.1% at smaller lenders.<\/li>\n<\/ul>\n<p>The trigger for the surge in savings is unclear, but with the property market wobbly in the wake of a crackdown on over-leveraged developers and momentum ebbing from the stock market, depositors say they are willing to sacrifice returns for safety. China has historically had high savings rates as a proportion of GDP, the highest by far among large economies according to the World Bank. However, when combined with <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/analysis-chinas-deposit-pile-stands-in-the-way-of-recovery\/\" title=\"China's large deposit reserves hinder recovery.\">capital controls preventing investment abroad<\/a> and below-expectations loan growth at home, it reflects weak domestic consumption and is a sign that money is not easily finding its way to productive enterprises.<\/p>\n<h3>The Challenge<\/h3>\n<p>Official data this week showing soft imports and deepening deflation in producer prices underscored the challenge. Benchmark 10-year Chinese government bond yields fell to a six-month low of 2.694% on Thursday. &#8220;The problem for consumption recovery is a loss of confidence due to the now scrapped zero-COVID policy and the property market problem,&#8221; said Chi Lo, <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/2022-is-turning-out-to-be-the-worst-year-ever-for-chinese-tech-stocks\/\" title=\"2022 Is Turning Out to Be the Worst Year Ever for Chinese Tech Stocks\">senior investment strategist<\/a> at BNP Paribas Asset Management in Hong Kong. &#8220;Although these two biggest drags on the economy have been addressed, confidence will only recover slowly \u2013 confidence would not come back like switching an on\/off switch.&#8221;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Winni Zhou and Tom Westbrook SHANGHAI\/SINGAPORE (Reuters) \u2013 China\u2019s increasingly urgent efforts to tip its mountain of savings into the economy are running up against depositors shy of all but the safest investments, in the latest sign that weak confidence is holding back post-pandemic spending and growth. Advertisement The latest move \u2014 prodding the<\/p>\n","protected":false},"author":66,"featured_media":1928936,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[542],"tags":[5909,21488,22865,12136,13337],"class_list":["post-1928935","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oann","tag-chinas","tag-deposit","tag-hinder","tag-recovery","tag-reserves"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1928935","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1928935"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1928935\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1928936"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1928935"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1928935"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1928935"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}