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Despite low interest rates, more people are willing to put their idle money into banks, a survey published Monday by China's central bank indicates.
The fourth-quarter survey of urban and rural depositors shows 39.5 percent of those surveyed consider "making more deposits" more worthwhile, up 1.6 percentage points from the previous quarter.
The proportion of those willing to make more deposits is about the same as the same period last year when the interest rates were raised, hitting the second highest level in the last two years.
The recognition of the interest rates for deposits, however, are slightly lower compared with the third quarter. The fourth-quarter survey indicates that 62.1 percent of those surveyed regard the interest rates as "low", up two percentage points from the previous quarter. While 36.3 percent view the interest rates as "moderate", down 1.4 percentage points.
The persistent willingness to make deposits is largely attributed to the lack of proper channels for investment, said an official with the People's Bank of China (PBC).
The recent reforms of China's share market have contributed a lot to calming down investor enthusiasm. The fourth-quarter survey shows that only 5.1 percent of those surveyed consider it wise to invest in stocks.
The circulation of national debts is too limited to meet demand. The residents have no choice but to make more deposits as they have little means of investment.
China's central bank raised the interest rates for small accounts in the foreign currency of commercial banks within the border again on October 15. The survey shows, however, the policy failed to enhance the confidence of Chinese residents in possessing US or Hong Kong dollars.
The willingness of Chinese residents to make more deposits in foreign currencies continues to decline, and their confidence in deposits in Renminbi is still on the rise.
(Xinhua News Agency December 13, 2005)
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