According to Urban Depositor Survey Report Q2 2022 issued by People’s Bank of China (PBOC) last week, Chinese residents’ deposit willingness continues to hike as 58.3% of the respondents prefer to “save more,” 3.6% up from the previous quarter. This is also the Chinese residents’ 5th consecutive quarter of increasing deposit willingness.

Meanwhile, the income sentiment index for this quarter is 44.5%, 5.7% down from the previous quarter. Specifically, 10.8% of respondents felt their income “increased” which was a 3.7% decrease compared to last quarter, while 67.6% of the respondents saw “not much income change,” down 3.9% from the previous quarter. The income confidence index dropped 4.3% since last quarter, to 45.7.

The resident’s employment expectation also seemed to be recessive. This quarter, the employment sentiment index slid 6.9% from previous quarter, to 35.6%. The employment expectation index dropped to 49.4%, down 6.0% from previous quarter.

These data reflect that the Communist China economy is still struggling with big challenges. The state-funded Chinese media, Xinhua Agency reported that Communist China Primer Mr. Li Keqiang held a meeting in Fujian on last Thursday with main coastal provincial leaders in South East China. Mr. Li highlighted that the current economy is in a process of recovery, which is very difficult and challenging. Li also called that the foundation for recovery is unstable and required more hard word for stabilization.