Chinese household wealth weathered the COVID-19 crisis and grew rapidly in 2020, thanks to the stock market’s rapid recovery and surging pension fund investment returns, according to a report.
Despite the crisis, gross financial assets of private households grew 13.6% in 2020 after rising 10.3% in 2019, according to the latest Allianz Global Wealth Report.
This represents around 47% of the total gross financial assets of the Asia region.
Securities, life insurance and pension fund assets, which account for more than half of Chinese household portfolios, rose 13.3% and 18.3% respectively.
Financial assets include cash and bank deposits, claims on insurance companies and pension institutions, securities (stocks, bonds and investment funds) and other claims.
Across Asia, household financial assets grew 12.7% in 2020, even faster than the already strong previous year (9.8%).
All asset classes contributed to the rise with double-digit growth rates; bank deposits grew by 12.3%, securities by 13.9% and insurance and pensions increased by 11.4%.
However, despite the strong growth, there is still some homework to be done in China when it comes to access to financial services and financial literacy, the study notes.
With net financial assets per capita standing at 12,430 euros (US $ 14,371), China is still only the top midfielder in Asia. In Singapore, the richest country in the region in terms of net financial assets per capita, the net financial wealth of the average population is ten times greater.
With savings as the main driver, global gross financial assets jumped 9.7% in 2020, reaching the 200 trillion euro mark for the first time.