Quick overview

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Chinese households are searching for higher-yielding investments, with $7 trillion in time deposits due this year. This shift could energize the country’s financial markets further.

Millions of people have sought the safety of bank deposits due to years of poor stock performance and a prolonged real estate crisis, which left behind a mountain of savings. That capital is increasingly seeking a new home as interest rates are now falling toward 1%.

Investors are contemplating switching to stocks, insurance, or wealth management products, aligning with Beijing’s efforts to promote long-term market growth and boost the overall economy.

According to a December report by Huatai Securities Co., approximately 50 trillion yuan in deposits with maturities longer than a year will mature in 2026, up 10 trillion yuan from the previous year. Zhang Jiqiang led the analyst group. The report states that large state-owned banks hold about 30 trillion yuan, with a larger share maturing in the first half of the year.

Sources familiar with the matter say the trend is already underway, with demand for participating insurance policies at some of the biggest insurers exceptionally high as investors seek steady returns in a low-interest-rate environment. Some are also investing in stocks, driven by a strong recovery that has increased their market value by more than $1 trillion in just the past month.

Since April, Chinese stocks have been climbing, demonstrating resilience during periods of international tariff tensions, as the nation’s AI advancements continue to attract investors. Gains in the technology sector have been particularly notable.