The Chinese saving rate has stayed around 35% for many years. However, analysts said this number is incorrect. According to a new report by McKinsey “Putting China's capital to work”, Chinese households actually save 23.8% of their disposable income, much lower than the headline number.
The report points out that in 2003, 1.86% of the wealthiest Chinese households controlled 60% of the total stock of liquid financial assets in China, and the lowest income quintile of Chinese households saved only 20% of their income.
Well, the lowest income households certainly have a much lower saving rate than rich people. However, a 20% saving rate is still quite impressive.
