Open up the balance sheet of a typical Chinese household, and you will see plenty to worry about on both sides of the ledger. Household debt is higher than it was a decade ago, while savings are concentrated in bank deposits or bricks and mortar. This conservative approach to saving may have worked in the past—but now it’s showing signs of strain amid a faltering property market, stagnant wages and growing debt distress.
In a two-part series, we’re asking Chinese families, young professionals and business owners about their money troubles. This week, Jiehao Chen, The Economist’s China researcher, and Simon Cox, our China economics editor, explore how the dream of security through home ownership became a nightmare.