CHINA has 1.3 billion people and $1,750 billion (£1,000 billion) in savings deposits — or about $1,300 for each person.
Most Chinese do not have a pension nor medical insurance and have nothing to fall back on if they lose their jobs. As a result most put away as much as they can under the mattress — if you are a peasant — or into a bank account for city dwellers.
The Chinese save about 40 per cent of their earnings, making them among the biggest savers in the world. This means that they have access to plenty of cash should they go shopping. And now they can do even more shopping abroad.
New changes to capital control regulations, unveiled yesterday, allow residents to buy foreign exchange more freely and up to a limit of $20,000 a year. Previously, the limit was determined by the amount of time a person spent abroad.
In reality, only a small percentage of the population has access to such a sum and most are urban residents. Official figures show that 20 per cent of the population holds 80 per cent of all bank deposits.
In the cities, incomes have been rising steadily, creating a new middle-class eager to spend cash, be it at Wal-Mart, Carrefour or Ikea. In Beijing, for example, the average family has about $25,000 of savings.
Most shop with cash because credit is almost unknown, cheques are used by businesses and banks rarely give loans, except to companies or government bureaucrats.
Even though most Chinese have no access to a mortgage, millions buy their own homes using their savings. Those who have already bought a home and a car are now looking to travel abroad on holiday.
The most popular destinations are South-East Asia, in part because the region was the first to open up to Chinese tour groups. However, the United States and Europe are already gearing up for a flood of Chinese holidaymakers.
Last year Britain was given "approved destination status" by Beijing and can now be marketed in China as a holiday destination.
Chinese travellers are eager to spend and with more freedom to buy dollars, they may soon be crowding into Harrods and queuing for the latest Burberry accessory.
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