Per capita net wealth of 482,000 yuan? CASS reproduces the magic average

Net wealth per capita of 482,000 yuan? The Academy of Social Sciences reproduces the magic average.

Recently, the latest version of the “national accounts book” was released. It shows that in 2019, China’s total social assets reached 1655.6 trillion yuan, the net social wealth of 675.5 trillion yuan, the per capita net social wealth of about 482,000 yuan. When the data came out, netizens exploded.

On the morning of February 26, China’s National Balance Sheet 2020, compiled by the National Balance Sheet Research Center (CNBS) of the Chinese Academy of Social Sciences, was officially released.

According to the book, from 2000 to 2019, the compound annual average growth rate of social net wealth is 16.2%, faster than the GDP growth rate, and the “flow catch-up” of China’s economy has given way to the “stock catch-up”.

According to the latest estimates, China’s total social assets have risen from nearly RMB 14,000 trillion in 2017 to RMB 1655.6 trillion in 2019.

In 2019, total social liabilities are 980.1 trillion yuan. After removing the total liabilities, the net social wealth is 675.5 trillion yuan, and the net social wealth per capita is about 482,000 yuan. The wealth of the residential sector is RMB 512.6 trillion, and the per capita wealth of residents is about RMB 366,000.

The main body of net social wealth is non-financial assets, which have risen from RMB 38.4 trillion in 2000 to RMB 661.9 trillion in 2019, accounting for 98% of the total.

Of the net social wealth, net external assets have risen from 0.48 trillion yuan in 2000 to 13.6 trillion yuan in 2019.

According to the book, although after more than three years of governance, the “deleveraging” and “stabilization of leverage” policies have been effective and financial risks have been eased. However, China’s overall financial risks are still at a high level and are concentrated in the government and public sector. As of the third quarter of 2020, China’s macro leverage ratio exceeded 270%.

According to China National Balance Sheet 2020, the “stock catch-up” in China’s economy is also reflected in the fact that China’s wealth as a share of U.S. wealth has far exceeded China’s GDP as a share of U.S. GDP.

Data show that China’s total savings rate has remained at 40-50 percent for a long Time, at 44.6 percent in 2018; in 2018, the total savings rate in the United States was only 18.6 percent, less than half of China’s. With the exception of China, the aggregate savings rate of major economies is largely below 30%.

In terms of financial risk, in addition to a macro leverage ratio of 270.1%, 61.7 percentage points higher than the leverage ratio of emerging economies, the hidden debt of local governments has increased government and public sector financial risk.

The figure of 482,000 yuan of net social wealth per capita listed in China’s National Balance Sheet 2020 blew up netizens.

One netizen mocked, “I believe it, I believe it all.” “Wouldn’t $1 million per capita sound better?” “Whoever can take half of mine, the remaining half goes to him.”

Some netizens see more thoroughly, “the value of roads, hospitals, schools, etc. are counted as within your average, because to level the 26 trillion debt of the local government, so that the market value is made high, so as to achieve the purpose of preserving the value.”

Netizens believe that such an average “is meaningless.”

In fact, compared with the ever-higher housing prices and prices, the real income and consumption power of Chinese residents are decreasing year by year.

According to a survey conducted by the Family Finance Survey Center of Southwest University of Finance and Economics, the growth rate of Chinese people’s disposable income has been declining for years, from 10.6% in 2012 to 7.4% in 2015 and 5.8% in 2019. Households with annual incomes of less than 30,000 yuan (RMB, same below) and 30,000-50,000 yuan are expected to see the largest reductions in consumption.

A data from the “Leisure Green Paper: China Leisure Development Report 2019~2020” jointly published by the Institute of Financial Strategy of the Chinese Academy of Social Sciences, the Tourism Research Center of the Chinese Academy of Social Sciences and the Social Science Literature Publishing House may give a glimpse into the magic of averages.

The data in this report shows that the average annual leisure consumption of Chinese nationals is 5,647 yuan.

Among them, 22.7% of individuals spend 1001-3000 yuan on leisure, 10% spend 3001-5000 yuan, and 11.1% spend 5001-10000 yuan. Those who exceeded 10,000 yuan accounted for 11.8%.

In other words, there are 44.4% or 620 million people who spend less than 1,000 yuan a year on leisure. 22.7% or 320 million people spend less than 3,000 yuan, and 10% or 140 million people spend less than 5,000 yuan.

And with the average, all of these nearly 1.1 billion people spend more than $5,000 a year on leisure, turning out to be $5,647.

Even if more than 60% of the population (about 940 million) can only spend their days in feeding their families, and even if the residents’ debt has reached 200 trillion RMB by the end of 2020, they still shine magnificently under the aura of the average.