As China’s economy continues to falter, consumer confidence has waned, leading to a significant decline in bank deposits. According to data released by the People’s Bank of China (PBOC) for April 2024, RMB deposits across the country dropped by nearly 4 trillion yuan (approximately NT$17.56 trillion) in just one month, sparking widespread concern. However, the decrease in deposits does not appear to be driven by increased consumption, as bank loan data also indicates a decline compared to previous years. This has prompted online discussions among netizens seeking to understand the underlying reasons.
According to a report by Epoch Times, China’s RMB deposits in the first four months of 2024 reached 7.32 trillion yuan (approximately NT$32.79 trillion). However, compared to the first quarter’s 11.24 trillion yuan (approximately NT$50.36 trillion), deposits have decreased by 3.92 trillion yuan (approximately NT$17.56 trillion). In April alone, deposits dropped by nearly 4 trillion yuan, with declines observed in both personal and corporate accounts. Many netizens are curious about the specific reasons for the substantial decrease in deposits, with some speculating that individuals may be withdrawing funds for consumption purposes.
However, a tweet by “Financial Truth” on Twitter (formerly known as X) suggests otherwise. According to the tweet, a Chinese citizen with a deposit of 4.26 million yuan (approximately NT$19.085 million) at Industrial and Commercial Bank of China (ICBC) is only allowed to withdraw a maximum of 20,000 yuan (approximately NT$89,600) per day. To withdraw the entire amount, it would take at least 213 days, or nearly seven months. Moreover, withdrawing 20,000 yuan daily would likely trigger scrutiny from the bank and local police, demanding proof of the funds’ origin.
An anonymous Chinese bank analyst cited in the report attributes the April decline to the passing of the bank’s quarterly assessment period. According to seasonal patterns, deposits tend to outflow during this time. Additionally, the analyst notes that banks have been actively reducing high-interest liabilities, leading to the release of corporate funds that are flowing into wealth management and bond markets.
The report further highlights a negative growth trend in bank lending and financing activities, prompting netizens to speculate about the underlying reasons. Some suggest that wage cuts may be leading to reduced disposable income, leaving individuals with little to no surplus for savings. Others speculate that individuals may be withdrawing deposits and converting them into US dollars for higher interest rates of up to 7% offered by Hong Kong banks.