The new cat­a­lysts of China’s mid­dle class

China Daily (Canada) - - SHANGHAI - By XU JUNQIAN in Shang­hai

xu­jun­qian@chi­nadaily.com.cn

Chi­nese cit­i­zens born be­tween 1985 and 1995 fol­low­ing the im­ple­men­ta­tion of the fam­ily-plan­ning pol­icy will be­come the back­bone of China’s ris­ing mid­dle class in five years, con­tribut­ing 35 per­cent to the coun­try’s to­tal an­nual consumption, up from the 15 per­cent in 2015, ac­cord­ing to anal­y­sis by global fi­nan­cial ser­vices provider Credit Suisse.

Re­search has also in­di­cated that th­ese in­di­vid­u­als, who are highly In­ter­net-de­pen­dent and watch lit­tle or no tele­vi­sion, are nat­u­rally adap­tive to the rapidly evolv­ing vir­tual space. As most of them are well ed­u­cated, they boast sub­stan­tial earn­ing and spend­ing power and will very likely be more will­ing to pay for ser­vices more than goods.

Th­ese find­ings from Credit Suisse’s lat­est re­port on the young Chi­nese gen­er­a­tion were re­vealed dur­ing the 6th China In­vest­ment Con­fer­ence which was held in Novem­ber in Shang­hai. Themed “Young China”, this year’s three-day con­fer­ence at­tracted nearly 170 cor­po­ra­tions which rep­re­sent a to­tal mar­ket cap­i­tal­iza­tion of over $2.4 tril­lion.

This is the first time the Zurich-head­quar­tered com­pany re­lo­cated its most im­por­tant an­nual con­fer­ence in Asia from Hong Kong to Shang­hai. The merg­ing Asian mar­ket gen­er­ated about 40 per­cent of its net new as­sets from April to June this year, be­com­ing its fastest grow­ing re­gion in the world.

“We be­lieve this rel­a­tively af­flu­ent young group will re­plen­ish China’s fu­ture mid­dle class as the lower-in­come el­derly are phased out,” said Yin He, head of re­gional con­sumer

GAO ERQIANG / CHINA DAILY

De­liv­ery com­pa­nies have had to cope with in­creas­ing num­ber of on­line or­ders as the younger gen­er­a­tion in China demon­strates a huge ap­petite for on­line shop­ping.

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