Five Chinese provinces — including economic powerhouses Guangdong and Zhejiang — have published 2025 financial results that paint a stark picture of household behaviour: deposits are surging while retail borrowing is flat or contracting. Household deposits grew at roughly 8–9% year-on-year in these provinces, even as short-term household loans shrank, suggesting rising risk aversion and an ongoing retreat from consumption and property borrowing.
The scale of the savings accumulation is notable. Nationwide, household RMB deposits reached about RMB 167 trillion by end-2025, up nearly 9.7% year-on-year, or roughly RMB 118,900 per person on a 1.40489 billion population basis. Guangdong — China’s largest economy — held RMB 38.7 trillion in total deposits, with household deposits of RMB 15.12 trillion (up 9.34%). Zhejiang’s totals are smaller in aggregate but far richer per head: 2025 per-capita deposits in Zhejiang reached about RMB 177,700, well above the national average.
The composition of deposits underscores the cautious mindset. Across the country, term deposits account for roughly 73.3% of household balances, with only 26.7% held as demand deposits. Local disclosures show marked regional differences: Hebei reported term deposits exceeding 80% of household balances, while Guangdong’s term share stood at about 57%. That prevalence of fixed-term saving suggests households are locking in yields amid expectations of lower rates or future uncertainty.
On the lending side the pattern diverges: household credit is tepid, while corporate borrowing is gaining traction. In Guangdong and Zhejiang, total loan books grew overall, but household loans fell slightly — primarily driven by declines in short-term consumer and business loans. By contrast, enterprise and public‑sector lending rose sharply, with substantial increases in both short-term working-capital facilities and medium-to-long-term loans, reflecting banks’ renewed appetite for corporate business and policy support for strategic investment.
Analysts link the twin trends to weak consumption confidence and a still-adjusting property market. With real incomes under pressure and housing demand cautious, many households are choosing to save more and reduce leverage. Policymakers have signalled plans to expand domestic demand and roll out measures to boost consumption and incomes; yet the data imply those initiatives have not yet restored household willingness to borrow and spend at scale.
The net effect for China’s economy is mixed. Large deposit inflows bolster banks’ funding bases and financial stability metrics, but persistent household deleveraging risks restraining domestic consumption — a key engine of the government’s rebalancing objective. How quickly consumers shift from saving to spending will determine whether recent gains in corporate credit translate into sustainable growth or simply mask weak underlying demand.