Family Finances in Urban China: Evidence from a National Survey

Abstract

This paper presents an overview of consumer financial well-being in transitional China. It provides an up-to-date and overall description of the Chinese urban households’ assets, liabilities, income, and consumption patterns. The data employed were collected by a national survey conducted in 2008. Results show that residential properties were the most important asset for the majority of households. A very small percentage of households had any kind of debt, which indicates that the credit market in China is currently underdeveloped and Chinese households may be reluctant to finance current consumption against their future income. Households spent only about half of their after-tax income. Future research is needed to help Chinese households better understand their finances and improve their financial well-being.

Keywords: China, consumer finance, liabilities, spending