Thursday 11 March 2010

Mainlanders save 45pc of income to be No. 1

Mainlanders saved money to provide their family with a more comfortable life whereas most Hongkongers, Koreans and Indians said they saved to provide for their retirement. Malaysian, Singaporean and Taiwanese people saved for “a rainy day”.

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Mainlanders save 45pc of income to be No. 1

Enoch Yiu
10 March 2010

They may have a reputation for splurging on Louis Vuitton and Chanel in Hong Kong’s luxury boutiques but when it comes to the crunch mainlanders are savers at heart.

A survey by HSBC Life Insurance shows mainlanders have the highest savings rate of seven major markets in Asia and put an average 45 per cent of their earnings away in bank accounts or invest in insurance, stocks and funds.

The survey, carried out in December with 3,563 respondents aged between 35 and 65, showed mainlanders were thriftier than Koreans who put away 39 per cent of their earnings, and Taiwanese who saved 37 per cent. Indians and Singaporeans both saved 34 per cent while Hongkongers ranked the second last among the seven markets with a saving rate of 33 per cent. That was only better than Malaysians, who saved 25per cent.

Terry Lo Kin-wing, chief executive of HSBC Life Insurance, said the mainland had not been seriously affected by the global financial crisis and this had allowed mainlanders to continue to save and invest.

“In view of the economic recovery, mainland Chinese increased their investments in savings, property and stocks,” Lo said. “While mainlanders are willing to save people still lack confidence in the market and thus save for the long term.”

Mainlanders saved money to provide their family with a more comfortable life whereas most Hongkongers, Koreans and Indians said they saved to provide for their retirement. Malaysian, Singaporean and Taiwanese people saved for “a rainy day”.

Sixty-one per cent of mainlanders and 65 per cent of Taiwanese said a lack of confidence in markets was the biggest threat to their saving. In Hong Kong, 67 per cent of respondents said losing their job was the biggest threat.

Fifty-one per cent of mainlanders increased their bank savings over the last 12 months, while 35 per cent increased investment in property and 45 per cent increased investments in stocks.

Poor insurance protection may explain the high rate of saving by mainlanders. Seventy-six per cent of mainland Chinese do not have medical insurance. By contrast, Korean, Malaysian and Taiwanese relied on insurance to pay their medical bills. Hongkongers and Singaporeans expected they could use public medical services which are cheaper than private medical providers.

Even with their high saving rate, 69 per cent of mainlanders still believe they do not have enough savings; 42 per cent said they plan to save more in the next six months.