China
Consumption revolution led by the youth is taking place in China
  ·  2021-01-26  ·   Source: NO.4 JANUARY 28, 2021


(XINHUA)

A consumption revolution is taking place in China, led by the youth.

Consumption is playing an increasingly important role in China's economic growth, a report released by international market research company Nielsen in 2019 said.

According to the report, people born after 1990 accounted for nearly 24 percent of Chinese consumers. In five to 10 years, they will dominate both China's and the global consumption pattern.

The recent years have seen rapid changes in young people's lifestyle. Today, various platforms, such as training, e-commerce and medical cosmetic procedures, provide loans targeted at different groups like university students, people starting their careers, and employees wanting to rent apartments. Almost every scenario has spawned a corresponding pattern for people to borrow to spend.

"Some consumer credit products are inducing the young generation to borrow money and spend in advance. This is not only an economic and financial phenomenon but also a cultural and demographic one with profound impact," Zhou Xiaochuan, former Governor of the central bank, said.

Chen Zhiwu, head of the Asia Global Institute at the University of Hong Kong, thinks borrowing to spend can help young people develop financial planning. "In developed countries such as the U.S. a financing culture has been formed among young people under the pressure of paying mortgages," he said, adding that borrowing money can force them to work harder to earn a higher salary.

This is an edited excerpt of an article originally published in China Newsweek on January 11 

(Print Edition Title: Consumer Loans)  
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