China has just seen the release of the first ever report on the debt status of the country’s young adults.
On 13 November Nielsen released its inaugural “China Consumer Young People Debt Status Report” (中国消费年轻人负债状况报告), just two days after the 11 November Singles Day shopping bonanza.
According to the report the average debt–to-income ratio of China’s young adults is 41.75%, while the monthly real debt repayment-income ratio stands at 12.52%.
University students who are currently enrolled have a lower monthly real debt repayment-income ratio at 7.5%.
The total credit product penetration rate for China’s young adults has reached 86.6%
The release of the Nielsen report comes just after the circulation of online reports claiming that the average debt level of Chinese millennials is 120,000 yuan, equal to 1850% of monthly incomes.
The Nielsen report points out that China’s post-90 and post-00 population currently accounts for around 24% of the country’s total population, set to become a key driver of Chinese, and even global, consumption over the next five to 10 years.