Goldman Sachs' China macro team says Chinese household asset allocation is in
the early stage of a structural shift. With real estate's role in wealth
accumulation waning and deposit rates are low, savings may gradually reallocate into
broader financial assets; equities and insurance are likely mid-term
beneficiaries. Equities currently account for under 10% of household assets,
implying substantial room for further reallocation. The bank cautions the
adjustment will be uneven—household risk appetite remains cautious and financial
wealth is unevenly distributed—so change is unlikely to be linear or
broad-based. If household confidence stabilizes and capital market returns prove
attractive, equities could take a larger share of new household savings.
