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Today, more Chinese are joining the ranks of the middle class than ever before and spending more along the way too. But China still is a vast land with a variety of incomes and spending habits. Beijing Review reporter Tan Wei caught up with several of our urban countrymen and women, and found that even in Beijing income and consumer trends will continue to vary markedly in the new year.
Li Shi, 32, and Wang Tingting, 24
Who: a newly married couple, both working in publicly listed IT companies
Assets: about 1 million yuan
Income sources: salary, author's remuneration, yield from stocks and funds, etc.
Biggest life change in 2006
We married in 2006 and are living happily together. Meanwhile, we began managing our money, getting more return.
2007 economic outlook
We're optimistic. As we have invested in the stock market, we pay close attention to economic development. In addition, we're in the Internet industry. It's very convenient to search information about the economy. We're confident about the outlook of our country's economic development.
Income expectation in 2007
Our salary won't change too much. We'll increase our investment in the stock market, hoping the return rate will be as high as 20 percent, as in the second half of 2006 when we put one third of our assets in stocks and funds and got considerable yield.
Consumption plans in 2007
Our main plan is to buy an apartment. We planned to buy an apartment last year, but housing prices in Beijing went up too fast. Then the government put forward several policies to curb the upward price pressure. Real estate developers changed their sales strategies back and forth. Therefore, we had to hold our money, wait and see.
If we buy an apartment in 2007, we'll spend a lot in house-decorating materials and furniture. If not, we will have no other large amount of spending. Maybe we'll turn to tourism.
In addition, our parents are becoming old. We have a budget for their health care. My wife plans to take part-time postgraduate courses this year, but I like self-study better than school training.
Factors that might affect life, work or consumption in 2007
Our life and work will remain stable. The only factor that will affect our life is the health of our family.
Biggest wish for the new year
To earn much more money.
Ning Bin, 26
Who: an employee at a large state-owned enterprise
Assets: an apartment with mortgage loans
Income sources: fixed salary
Biggest life change in 2006
Life did change in 2006.
I used to have savings each year, but from the beginning to the end of 2006, I had been repaying my housing loan as well as part of the down payment I borrowed from others.
2007 economic outlook
2007 will be a better year for economic development. Our country's economy has kept developing at a high speed. The investment market has also been active due to the adjustment in the financial sector. The positive stock market trends in 2006 also gave confidence to individual investors.
Income expectation in 2007
In most state-owned enterprises, employees' income consists of a fixed monthly salary and a year-end award, fluctuating with each enterprise's profit of the year. Except if I get a promotion or an increase of salary, my income won't change too much.
Consumption plans in 2007
If I have spare money, I will pay off my housing loan in advance, as the loan interest rate is too high. Meanwhile, I'll try investing in funds, as I feel that investment prospects in 2007 are bright judging by my knowledge of economics learned at the university.
With regard to tourism, I have a lot of chances to travel on business to many branches of our company all over the country. I can go sightseeing after business, which can save a lot of money.
Factors that might affect life, work or consumption in 2007
Whether I can get a promotion will be a factor. In state-owned enterprises, a promotion means not only more salary, but also more space for future development.
Biggest wish for the new year
To get married. I hope my Miss Perfect can appear as soon as possible. Chinese men often marry at around 28 years old because at this time of life, most of them are stable in career, have certain financial means and have the ability to start a family. I think I'm such a man.
Wen Qijun, 35
Who: a private company owner
Assets: about 8 million yuan including four apartments, a villa, two Audi A6 cars, and a company
Income sources: profits of the company, with net profit of about 3 million annually
Biggest life change in 2006
The biggest change is that I received news that I would get my return on an investment made four years ago. At the beginning of 2002, I invested a sum of money in the project of an education network in west China's Guangxi Zhuang Autonomous Region. Its final test was finally finished last year and the network would soon be put into use. I received a promise that all the money owed me would be paid before the coming Spring Festival. I can finally get the money back.
2007 economic outlook
I'm not optimistic about the economy in the new year, mainly because of vicious inter-sector competition and fake goods' impact on the market.
Income expectation in 2007
I am not expecting an increase of my income, and will feel satisfied with just maintaining the current level.
Consumption plans in 2007
I'm keen on auto traveling. I drove to the Xinjiang Uygur Autonomous Region twice and the Tibet Autonomous Region five times, but I still want to drive there this year if I can spare some time, as the two regions are extremely attractive to me.
Factors that might affect life, work or consumption in 2007
Credibility in economic activities can be one. I have lived in Guangxi for nearly seven years, lending about 3 million yuan, but I haven't gotten even one cent back.
Biggest wish for the new year
I'm eager to spend the whole year healthily and happily. In the past several years, I suffered several defeats both in my business and my personal life. I hope to say goodbye to all this unhappiness.
Guo Yuhao, 24
Who: a returnee from abroad
Assets: zero
Income sources: parents'
support and small amount of payment from some part-time jobs
Biggest life change in 2006
The thing that influenced me most is I got my MBA degree from the University of Liverpool and came back to start a new life.
2007 economic outlook
I'm optimistic about the economy in the new year. When I studied abroad, I paid much attention to our country's economic development. In recent years, China's market economy develops well. International trade barriers have been broken gradually. I believe we are only at the beginning of economic prosperity. The trend will continue in the future and the economy will sustain healthy development.
Income expectation in 2007
I'm hunting for jobs. I hope I can find such a job-the job itself and the salary it provides can help me achieve self-value. The monthly salary should be at least 3,000 yuan.
Consumption plans in 2007
If I have enough money and time in the new year, I hope I can travel to the western part of China or abroad to experience a different life.
Factors that might affect life, work or consumption in 2007
To me, it's health, as my physical condition is not so good. Except for that, I think other things can be achieved through my efforts.
Biggest wish for the new year
Of course, it's getting a job-a satisfying job. Judging by the job-hunting of my returnee friends, I should say the prospect of getting a good job is not optimistic. Many companies value job seekers' working experience, rather than their educational background. My proficiency in English used to be considered an advantage but has lost its former competitiveness as domestic English language education has improved a lot. Moreover, the employment rate of domestic university graduates has declined year by year since 2001. It's really difficult to find a good job.
Li Xiangmin, 61
Who: a retiree from the Chinese Academy of Geological Sciences
Assets: an apartment he's living in and 300,000 yuan in bank deposits
Income sources: pension and foreign exchange speculation
Biggest life change in 2006
The biggest change is that my son married last year and moved out. At the beginning of 2006, my wife and I spent some of our savings as a down payment to mortgage an apartment for our son. Now he lives far away from us and it's not easy to see him as before.
2007 economic outlook
Much the same as in 2006. China's economic policy has been stable. I believe that there will be no big changes in 2007. Neither will there be a big economic impact on individuals. Prices are rising, offsetting the increase of our income. Thus, household economic conditions may also be much the same as the past several years.
Income expectation in 2007
My pension won't change too much in 2007, as it's paid according to state regulations. In 2007, I may invest in funds or stocks if I have extra money, as long as the yield is higher than deposit interest.
Consumption plans in 2007
In the new year, I'm going to buy some medical insurance for my wife and me. And I also want to pay off the loans of my son's new apartment in advance.
Factors that might affect life, work or consumption in 2007
Physical conditions. That's what people at our age worry about most.
In China, medical treatment fees are expensive and the country's medical insurance system is still underdeveloped.
So I'll buy medical insurance so that medicare won't be a burden to our family in case my wife and I have serious diseases.
Biggest wish for the new year
Be healthy! To old people, health is the most important. In addition, I hope I'll soon be a grandfather.
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