Why did China's previous savings rate rank first in the world? Not working now?

China's savings rate used to be the highest in the world, but now the reasons for its decline are: China's economic transformation, the upgrading of industrial structure, the change of residents' consumption will, and the diversification of residents' investment channels, which have also led to the decline of China residents' savings rate.

In recent years, China's economy has changed from high-speed growth to medium-high-speed growth, which means that the economic growth rate has slowed down and the economy has changed, so the money in the hands of ordinary people will also decrease. In particular, the sudden epidemic this year has plunged many families into poverty, and many enterprises have closed down because of the epidemic, resulting in many workers being laid off and related income declining.

At the same time, with the improvement of residents' living standards, many people's consumption concepts have also changed, from not daring to spend before to daring to spend now. However, China now attaches great importance to infrastructure construction and public medical investment. For ordinary people, the biggest expense is nothing more than buying a house, a car and seeing a doctor. These expenses are essential, and now the house price is still high, and residents don't have much money to deposit in the bank. With the further improvement of China's medical insurance system, ordinary people no longer have the risk of losing their money when they get sick, and residents' consumption is bound to be bolder and their savings will be reduced accordingly.

At the same time, another important reason why China's savings rate has remained high before is that the investment channels are single, and residents have money and don't know where to invest. Therefore, to be on the safe side, many people put their money in the bank. Moreover, in the past, the bank interest rate in China was relatively high, so it was more cost-effective to put it in the bank. However, with the continuous reduction of bank interest rates and the continuous improvement of China's financial market, residents have more choices to manage their own funds, so residents are bound to choose funds and securities with higher return on investment.