Chinese Household Balance Sheet Structural Shift From Property To Financial Assets Amid Ongoing Deleveraging

Chinese household balance sheets are shifting structurally from a reliance on residential property toward financial assets. This transition occurs amidst ongoing household deleveraging and a cooling property market.

Key Takeaways

• 1.Chinese household wealth is undergoing a structural shift from property to financial assets as housing plays a diminished role.
• 2.The household sector is in a sustained deleveraging phase with declining mortgage balances and consumer loans.
• 3.China's debt-to-income ratio is high relative to international peers, creating a significant burden on household cash flow.

Table of Contents

• Chinese Household Balance Sheet: Structural Shift from Property to Financial Assets Amid Ongoing Deleveraging
• The evolution of Chinese household wealth from 1978-2022
• Box: Constructing quarterly household balance sheet tracker
• Continued household deleveraging
• From Bricks to Beta: A gradual shift in household asset allocation

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