DeepDive: Household Deposits, WMPs and Home Sales

Since our last DeepDive in late December, Chinese officials have announced further steps to stimulate the economy this year. In this DeepDive, we take a look at household deposits and how they are related to home sales and the performance of wealth management products (WMPs). We also provide an updated quantitative textual analysis of recent official stimulus language. We believe that for consumers to be willing to significantly reduce their high deposit levels, an improvement in the returns of WMPs, the property sector and household confidence will be needed first.