Why debt-shy Chinese consumers may snub loan subsidy scheme

As China rolls out subsidies for personal consumer loans, covering part of the interest costs, Beijing’s latest effort to spur spending is likely to be tested by a deeply ingrained public attitude: saving.

For many Chinese households, including Mary Lin, a 54-year-old primary school teacher, borrowing to spend remains unimaginable.

“Except for a mortgage, I’ve never taken out a bank loan in my life,” she said.

“Taking out a bank loan to spend isn’t popular for people of our generation, unless it’s for something like buying a home.”

Even for younger people like 25-year-old Sally Wan, debt-fuelled spending remains unattractive – even if she does not rule it out entirely.

Wan, an employee at a consulting firm in Shanghai who earns slightly above 10,000 yuan (US$1,394) a month, said she does not plan to take part in the new consumer loan subsidies scheme – though she previously used China’s massive trade-in programme to buy a computer and headphones.

Темы и теги

Китай Экономика и Бизнес

схема субсидия кредит долговой потребитель китайский расход потребительский процентный