According to data cited by Bloomberg, in July, Chinese investors withdrew from their accounts about 1.6 trillion yuan (equivalent to $ 260 billion) for deployment of these funds offered by banks’ investments in real estate and capital. This has led to an unprecedented drop in the savings – such rates, according to the agency, not fixed, at least for the entire period of accounting data, since 2000, which can be seen in the published statistics of the People’s Bank of China. Disclaimer from placing funds in bank accounts linked to their low profitability, as the Central Bank of China limited the amount of interest on deposits. Measures taken by the central control caused by the need to facilitate the acquisition of low-cost loans to domestic companies. The downside of this solution is becoming more accommodating of depositors’ funds in various investment products offered by banks. “The tendency to directing money from savings accounts noticeable the past few years”, – said the head of the agency Bloomberg Hong Kong Branch of the New Zealand Banking Group Ltd Liu Ligan. According to him, the main reason for this should be recognized is limited to the interest on deposits. Maximum annual yield on deposits in RMB is fixed at 3%. In this case investments in property assets and capital offered by Chinese banks, on average, allow to obtain an annual return of 5.2%. All of these services require banks’ investments in foreign property assets for the benefit of Chinese customers. The exact date of the abolition of restrictions on interest on bank deposits is unknown. The head of the People’s Bank of China Governor Zhou Xiaochuan in March expressed the view that the liberalization of return on deposits held in the next two years. Stanislav Kuvaldin
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