Goldman Sachs: Chinese Households' Equity Allocation Still Low Relative to Long-Term Potential

Odaily Odaily reports that a research report recently released by Goldman Sachs' China macroeconomics team states that Chinese households' asset allocation is at an early stage of structural transition. As the role of real estate in wealth accumulation gradually diminishes and deposit rates remain low, savings may progressively shift towards a broader range of financial assets, with equities and insurance expected to be the main beneficiaries in the medium term. "Chinese households' equity allocation relative to its long-term potential remains low."

The Goldman Sachs report indicates that the current proportion of equities in household assets is less than 10%, suggesting significant room for further asset reallocation as households gradually broaden their investment horizons. Goldman Sachs also noted that given households' still cautious risk appetite and the uneven distribution of financial wealth, this adjustment is unlikely to be linear or cover a wide range of the population. Even so, if household confidence stabilizes and capital market returns prove attractive, equities could occupy a larger share of new household savings in the future. (Shanghai Securities News)