As China rolls out subsidies for personal consumer loans, covering part of the interest costs, Beijing’s latest effort to spur spending is likely to be tested by a deeply ingrained public attitude: saving.
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For many Chinese households, including Mary Lin, a 54-year-old primary school teacher, borrowing to spend remains unimaginable.
“Except for a mortgage, I’ve never taken out a bank loan in my life,” she said.
“Taking out a bank loan to spend isn’t popular for people of our generation, unless it’s for something like buying a home.”
Even for younger people like 25-year-old Sally Wan, debt-fuelled spending remains unattractive – even if she does not rule it out entirely.
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Wan, an employee at a consulting firm in Shanghai who earns slightly above 10,000 yuan (US$1,394) a month, said she does not plan to take part in the new consumer loan subsidies scheme – though she previously used China’s massive trade-in programme to buy a computer and headphones.
