China’s consumers are sitting on excess savings of 6 trillion yuan (US$874 billion), but business analyst Shaun Rein sees consumer confidence is pretty low, and they seem unwilling to spend their savings, he tells the South China Morning Post.
The South China Morning Post:
For others, the pulse on the ground is less than encouraging. Three years of living with tough zero-Covid restrictions have forced consumers to tighten their purse strings under the pressure and threat of job losses. A persistent downturn on the property market is another hindrance.
“Consumers are trading down and consumption downgrades are going on here,” Shaun Rein, founder and managing director of China Market Research Group in Shanghai, said in an interview on Thursday. “People are not sure about the economy and they are still remembering job cuts. Consumer confidence is bad.”
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