Consumers’ preference for delayed consumption declined slightly, according to a survey conducted by the People’s Bank of China.
The rate of respondents who “don’t entirely agree” and “entirely disagree” to save money and delay spending fell by 0.37 percentage points from 2017.
Typically, consumers save money to prepare for uncertainties and possible expenditures in the future, said Yang Jun, professor of trade and economics at the University of International Business and Economics.
With the improvement of living standards and social security, the uncertainties of employment, education and healthcare have been reduced, which has, in turn, stimulated consumption.
Statistics show that retail sales of consumer goods totaled 19.5 trillion yuan in the first half of 2019, an increase of 8.4 percent year-on-year.
Young people, who value the quality of life, are gradually becoming the primary driver of consumption. Those born after 1995 or 2000 grow up in relatively good living conditions, said Wang Jun, member of the academic committee of the China Center for International Economic Exchanges. Wang believes that when this age bracket becomes the main consumers, it is only natural that the preference for delayed consumption will decline.
Meanwhile, young consumers tend to use credit cards and other credit products online to pay for things. Forty-five million out of the total 170 million people belonging to the post-1990s generation have opened a Huabei, a credit payment service provided by Alipay, a Chinese online payment platform.
More young people are now aware of the balance between saving and consumption. College student Liu Ye (a pseudonym) said she would buy expensive things as a reward alongside saving money for emergencies. She now sets a monthly limit of 4,000 yuan so that she won’t overspend.
