A new report from Baidu spin-off Du Xiaoman on consumer finance in China points to ongoing rapid growth in the sector on 2019.
The “2019 Chinese Consumer Finance Annual Report” (2019年中国消费金融年度报告) jointly released by Guanghua School of Management and Du Xiaoman on 23 December indicates that Chinese consumer loans hit 13.34 trillion yuan (approx. USD$1.9 trillion) as of the end of September 2019.
The report points out that the consumer finance penetration rate has risen markedly in recent years, hitting 34.6% as of the end of 2018.
People born in the 1990’s and 2000’s have emerged as the mainstay force behind Chinese consumption growth, with their total numbers currently exceeding 300 million.
According to the report younger Chinese are more inclined to consume on credit given their heightened demand for quality of life and entertainment and leisure activities.