The net assets of the residential sector in #China actually increased amid #COVID19 as the expenditure has dropped much more than the #income and residents’ #deposits minus loans rose sharply:
new.cf40.org.cn/uploads/202007…
1/6
...In Q1, the residential sector’s deposit-loan gap reached a record high, increasing by 5.3 trillion yuan in a single quarter. This provides important support for the rapid recovery of household expenditure... 2/6
...Although the overall balance sheet of the residential sector has been strengthened passively, there are also significant differences within the sector... 3/6
...The middle class has increased savings passively as their wage income remains stable, while migrant workers have suffered a greater loss of income, whose savings are likely to decline and the corresponding balance sheet will be deteriorating rather than improving... 4/6
...At present, the #construction industry where a large number of migrant workers are employed is in a relative boom. The overall PMI and #employment of the construction industry have rebounded rapidly, significantly higher than other industries... 5/6
..This helps alleviate the cash flow pressure of migrant workers. But if new #demand fails to grow, the construction industry will slump quickly, and the migrant workers will again face unemployment pressure. 6/6
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