{"id":203724,"date":"2025-10-16T07:55:22","date_gmt":"2025-10-16T07:55:22","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/203724\/"},"modified":"2025-10-16T07:55:22","modified_gmt":"2025-10-16T07:55:22","slug":"chinas-rebound-in-household-savings-poses-risks-for-stock-rally","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/203724\/","title":{"rendered":"China\u2019s rebound in household savings poses risks for stock rally"},"content":{"rendered":"<p class=\"whitespace-pre-wrap break-words mb-4 md:mb-6\" data-testid=\"article-paragraph-component\">[BEIJING] Chinese households ramped up their cash holdings last month in a sign that they have begun shying away from local stocks just as the market is challenged by renewed trade tensions.<\/p>\n<p class=\"whitespace-pre-wrap break-words mb-4 md:mb-6\" data-testid=\"article-paragraph-component\">Household savings rose by 2.96 trillion yuan (S$538.3 billion) in September, the most since March, according to data released by the People\u2019s Bank of China late on Wednesday (Oct 15). The pace of increase was higher than that in the same month last year.<\/p>\n<p class=\"whitespace-pre-wrap break-words mb-4 md:mb-6\" data-testid=\"article-paragraph-component\">The renewed build-up of savings may deprive the stock market of a key source of support, after low deposit rates and meager government bond yields spurred investors to seek higher returns in equities. <\/p>\n<p class=\"whitespace-pre-wrap break-words mb-4 md:mb-6\" data-testid=\"article-paragraph-component\">Fading support from households bodes ill for Chinese stocks at a time when trade tensions between the US and China are showing no signs of easing.<\/p>\n<p class=\"whitespace-pre-wrap break-words mb-4 md:mb-6\" data-testid=\"article-paragraph-component\">\u201cThe migration of China\u2019s household deposit to riskier assets has decelerated,\u201d which will likely moderate the rally in stocks, Li Chao, chief economist at Zheshang Securities, wrote in a note.<\/p>\n<p class=\"whitespace-pre-wrap break-words mb-4 md:mb-6\" data-testid=\"article-paragraph-component\">That change in sentiment is already visible in recent market performance. China\u2019s benchmark stock index has retreated from the highest level since 2022 touched last week, while bond yields have eased after the latest series of tit-for-tat moves by Beijing and Washington reduced the appetite for risky assets.<\/p>\n<p>BT in your inbox<img loading=\"lazy\" decoding=\"async\" alt=\"Newsletter Img\" class=\"hidden h-auto max-w-full self-start min-[321px]:block\" width=\"75\" height=\"75\" src=\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2025\/07\/generic_newsletter-CGny2zps.png\"\/><\/p>\n<p role=\"description\" class=\"mb-3 font-public-sans text-base font-light tracking-normal text-gray-850 md:text-lg\">Start and end each day with the latest news stories and analyses delivered straight to your inbox.<\/p>\n<p class=\"whitespace-pre-wrap break-words mb-4 md:mb-6\" data-testid=\"article-paragraph-component\">In another sign of lower demand for stocks, deposits at non-bank financial institutions, which are typically used for margin deposits, dropped for the first time in three months in September.<\/p>\n<p class=\"whitespace-pre-wrap break-words mb-4 md:mb-6\" data-testid=\"article-paragraph-component\">However, some analysts attribute the slowdown in non-banking financial deposits in part to higher holdings of cash in a transitory phase as savers look for higher-yielding products.<\/p>\n<p class=\"whitespace-pre-wrap break-words mb-4 md:mb-6\" data-testid=\"article-paragraph-component\">A government proposal to revise charges on mutual fund fees last month, which is expected to increase costs for those seeking a rapid turnaround, may also have kept some investors on the sidelines, according to GF Securities analysts including Zhong Linnan.<\/p>\n<p class=\"mb-6 border-b border-gray-250 pb-4 font-poppins text-4xs font-medium tracking-widest text-gray-515\">SEE ALSO<\/p>\n<p><a class=\"block h-full w-full\" href=\"https:\/\/www.businesstimes.com.sg\/companies-markets\/capital-markets-currencies\/china-markets-under-threat-risk-renewed-us-trade-war?ref=article-see-also\" data-discover=\"true\" rel=\"nofollow noopener\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" class=\"relative z-10 h-full w-full object-cover\" src=\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2025\/10\/5d347c04514e890e2da599dcf4b5de0c02a318b85341071094c545be5d131ac5\" alt=\"A lasting deterioration of ties between the two largest economies could imperil one of the world\u2019s best performing stock markets this year, as well as renew doubt over China\u2019s investability. \" width=\"2000\" height=\"1334\"\/><\/a><a class=\"block h-full w-full\" href=\"https:\/\/www.businesstimes.com.sg\/companies-markets\/capital-markets-currencies\/china-stocks-rise-post-break-ai-buzz-outshines-tepid-spending?ref=article-see-also\" data-discover=\"true\" rel=\"nofollow noopener\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" class=\"relative z-10 h-full w-full object-cover\" src=\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2025\/10\/fcb7b740967dbcb64b91cca0f636622da463e8a3db13114cd42547af3ebeb172\" alt=\"Traders are watching the People\u2019s Bank of China\u2019s daily reference rate for policy signals as onshore markets reopen.\" width=\"2000\" height=\"1333\"\/><\/a><\/p>\n<p class=\"whitespace-pre-wrap break-words mb-4 md:mb-6\" data-testid=\"article-paragraph-component\">Still, the broader mood remains one of caution.<\/p>\n<p class=\"whitespace-pre-wrap break-words mb-4 md:mb-6\" data-testid=\"article-paragraph-component\">Xiaojia Zhi, chief China economist at Credit Agricole CIB, said market sentiment could turn more cautious in the face of tariff risks and after the sharp rally in stocks. \u201cHouseholds could be less in a hurry to make new equity investment.\u201d BLOOMBERG <\/p>\n","protected":false},"excerpt":{"rendered":"[BEIJING] Chinese households ramped up their cash holdings last month in a sign that they have begun shying&hellip;\n","protected":false},"author":2,"featured_media":203725,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[84,467,56,54,55],"class_list":["post-203724","post","type-post","status-publish","format-standard","has-post-thumbnail","category-markets","tag-business","tag-markets","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/203724","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=203724"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/203724\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/203725"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=203724"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=203724"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=203724"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}