The number of middle-class consumers on the mainland is expected
to nearly triple to 100 million in 10 years from 2006, according to
a survey released on Friday.
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The survey, conducted by HSBC and MasterCard Worldwide,
interviewed 1,736 people in Beijing, Shanghai and Guangzhou from
February to May.
It defined China's middle class as those whose annual income
ranges from $7,500 to $25,000, aged from 20 to 49. It includes
modern women and double-income couples with no kids (DINKs).
"Modern women" refers to those with a university degree or above, a
professional job and financial independence.
"As mainlanders are shifting from purely saving to spending and
investment, there are huge opportunities for many financial service
providers," said Catherine Fok, head of personal financial services
at HSBC Bank (China) Co Ltd.
Yuwa Hedrick-Wong, economic advisor at Mastercard Worldwide,
Asia-Pacific, said robust economic growth over the past three
decades has created a sizable middle class in China. "Over the next
10 years, the quickly expanding middle-class group will play a
crucial role in China's economy. They will help boost domestic
demand through purchasing, thus reducing China's economic
dependence on external demand," said Wong.
Discretionary spending accounts for 73 percent of disposable
income for those with annual incomes of between $25,000 and $50,000
in urban China, compared with 30 percent for those whose income
ranges from $6,000 to $25,000.
The survey also showed that modern women have a much higher
consumption appetite. Around 85 percent of modern women have
purchased luxury goods, followed by the middle class at 76 percent
and DINKs at 75 percent.
Only 34 percent of modern women have not traveled overseas,
followed by the middle class at 46 percent and DINKs at 52
percent.
(Xinhua News Agency December 8, 2007)
