Retail Savings & Investments in China: Coronavirus (COVID-19) Sector Impact

Retail Savings & Investments in China: Coronavirus (COVID-19) Sector Impact

Summary

The Coronavirus (SARS-CoV-2) outbreak, dubbed COVID-19, is first and foremost a human tragedy, affecting millions of people globally. The contagious Coronavirus, which broke out at the close of 2019, has led to a medical emergency across the world, with the World Health Organization officially declaring the novel Coronavirus a pandemic on March 11, 2020.

Fears surrounding the impact of COVID-19 have significantly impacted the global economy, with key stock markets across the world losing 20-50% of their value year-to-date. Many economists and institutions have cut their forecasts, with many experts predicting the potential onset of recessionary environments.

A similar trend is expected in China as well, as economic growth in the country is expected to register a dip in the first quarter of 2020 and will decline further if this disease relapses. The real GDP growth rate for China is expected to decelerate in 2020. The decline will have an adverse impact on all sectors including retail investments.

This report focuses on the impact of the Coronavirus outbreak on the Chinese economy and the country’s retail savings and investment market. It also highlights the measures adopted by the government to combat COVID-19. Based on our proprietary datasets, the snap shot contrasts GlobalData’s pre-COVID-19 forecasts and revised forecasts of total retail bond, deposits, equities and mutual funds holdings in terms of value and growth rates. It also analyses the effects on HNW wealth, examining the importance of different industries as a contributor to HNW wealth.

Scope

  • The Chinese retail savings and investment market is forecast to grow by just 3.3% in 2020, its worst performance since the global financial crisis.
  • China’s revised post-COVID-19 forecast reflects the spread of the pandemic globally as the initial forecast in January 2020 had already incorporated the impacts of the Hubei outbreak and the subsequent quarantine efforts. As such, its downgrade in investment value was more modest than other markets.
  • The small bond holdings in the Chinese market are expected to surge, while deposit growth is set to accelerate modestly. Both equity and mutual fund holdings will decline before a rebound in 2021.
  • Manufacturing and base material wealth, both important sources of wealth for the Chinese wealth market, will suffer during the global pandemic and the associated economic disruption.
  • Much of the equity losses observed in the overall Chinese investment market will be suffered by high-net-worth (HNW) investors, who are more exposed to equity and property investments than the typical small-scale investor.
Reasons to Buy
  • Make strategic decisions using top-level revised forecast data on the Chinese retail savings and investments industry.
  • Understand the key market trends, challenges, and opportunities in the Chinese retail savings and investments industry.
  • Receive a comprehensive insight into the retail liquid asset holdings in China, including deposits, mutual funds, equities, and bonds.


COVID-19 Update
Impact Assessment
Retail Savings and Investments
Retail Bond Holdings
Retail Deposit Holdings
Retail Equity Holdings
Retail Mutual Fund Holdings
Appendix
Supplementary Data
Definitions
Methodology
About GlobalData
Contacts

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