China Households Abandon Property for Cash Reserves
Chinese households have shifted their focus away from real estate and towards cash reserves, according to a report by Goldman Sachs. The report found that property's share of Chinese household assets fell to 52% in the first quarter of 2026, down from 67% in mid-2021. Over the same period, cash and bank deposits rose to 25% from 16%. This trend is seen as a structural shift, with Goldman Sachs analysts noting that as property's role in wealth accumulation fades, savings are likely to move towards broader financial assets.
A Beijing homeowner named Yu cited low rental yields, lack of confidence in Beijing home prices over the next five years, and concerns about population decline as reasons for considering selling her apartment. She also mentioned waiting for a more favorable exchange rate before investing abroad.
The report also found that direct stock holdings among Chinese households edged up to 6% in the first quarter of 2026 from 5% in mid-2021, with only a quarter of adults participating in the equity market.