Update: 2014-04-07: Eliminated links to Bing dictionary, replaced with links to other dictionaries & encyclopedias. I just did a class on personal finance and my students in China mentioned the low interest rates they receive on their savings.
Well, an article from the Wall Street Journal (the most important financial newspaper in the US) has looked into this and come to this conclusion: people in China who save money are really losing money. Because the percentage of interest they receive is lower than the percentage increase in the cost of living, Chinese savers *lose* an estimated 190 billion yuan a year. But if savers are losing that money, then who is gaining it? The government, the banks and the companies banks lend to. Ordinary Chinese savers are paying a hidden tax to the government and a hidden subsidy to the banks and their corporate borrowers. Read more here:from China Realtime Report, The Wall Street Journal.
5 Comments
Alysa
4/4/2011 10:48:27 pm
Joe, 100% agree with your opinion!
Reply
Amy
26/1/2012 01:20:04 pm
Yes, from my own experience in 2011, invest your money in stock market will make your loss even more. Where can we keep safe of our money , it is a question in China. What do you do in Mexico?
Reply
Giuseppe (a.k.a joe3)
29/1/2012 11:14:28 pm
at the moment, I just leave my money in the bank. I don't earn any interest but at least I don't lose some/all of it as I might by investing in shares.
Reply
Allen
14/5/2012 06:55:45 pm
It sounds unbelievable, but it's a realty in China, gov. take so much money from people, and various tax be payed repeatedly, Now, Most of people called white-tie haven't their own houses, moreover the normal people. if we buy a house, we have to apply the loan from the bank, Basically, it will take 20~30 to return the loan to bank, when that day coming, we are old and grey, what a pity life!
Reply
Giuseppe (a.k.a joe3)
15/5/2012 05:03:37 am
@Allen, I think that's why so many white collar people look for other investments, like the stock market.
Reply
Leave a Reply. |
G.A.L.E.S.L. / joe3
Some tips and links on learning English. Categories
All
Archives
June 2017
|