Chinese women are partnering with strangers to save money

Chinese women are partnering with strangers to save money
Kathy Zhuo and her two children.Xiao Zhuo

During the pandemic, Kathy Zhuo and her husband were forced to take a 50 % pay cut. She even had to take care of her family, who had been given a cancer diagnosis five years ago.

Every year, we lacked income. I felt uncomfortable but did n’t know what to do”, says the 36- season- aged mother of two, who lives in Fujian, a city in southern China.

Ms. Zhuo joined the pattern of fresh Chinese people looking for partners- or da zi- with related interests electronically as a result of the surprise to her family’s finances. But she has collaborated with individuals who want to save money rather than going on trips or doing exercise up.

The hashtag” saving de zi” first emerged on Xiaohongshu, China’s version of Instagram, in February 2023. It has attracted 1.7 million opinions so much, according to statistics research firm Newsrank. Issues about ‘so-called saving companions ‘ have been viewed millions of times on Weibo.

According to Lu Xi, a professor of public policy at the National University of Singapore, the pattern indicates a “low confidence in the future economy.” China’s economy expanded more quickly than expected in the first quarter, but it still faces a growing house crisis, declining foreign investment, and mounting regional government debt.

Ms. Zhuo considers herself lucky to work in the fresh energy market, which is growing and is thought to have contributed about 40 % of the nation’s economic growth last year. Nevertheless, she feels driven to “prepare for threat” as many of her friends and family are losing their jobs.

A customer purchases potatoes at a supermarket on March 9, 2024 in Congjiang County, Qiandongnan Miao and Dong Autonomous Prefecture, Guizhou Province of China

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Ms. Zhuo started a number of online saving parties in February of this year, with the majority of the people being women between the ages of 20 and 40. Every morning, they log their budget and costs. Additionally, they aid in preventing one another from making impulsive buying.

According to Ms. Zhuo, one member was persuaded to purchase a luxury bag for 5, 000 yuan ($ 690, £560 ), but after talking to other group members, she chose a much less expensive, second-hand bag.

She claims she feels a sense of brotherhood with her saving partners and is surprised that so many others are doing the same. She claims that her paying decreased by 40 % just one month after forming a partnership with her partner. She then aims to protect 100, 000 renminbi this year.

Wen Zhong, a 30- year- ancient primary school teacher, says she has cut back her online purchasing with the help of her saving lovers.

Otherwise, she today spends more time studying and spinning. Additionally, she has begun selling handmade goods at nearby markets, which generates more revenue. More importantly, Ms Wen says, this has helped her move towards a simple life, which she appreciates more.

China now has one of the nation’s highest keeping rates. Official statistics show that in 2023 the country’s communities put about 138 trillion yuan in the bank, an almost 14 % increase from a year earlier.

However, Dr. Lu claims that the Chinese government may have a big issue with this higher level of savings. The main banks of the nation is typically lower interest rates to boost the economy because it makes saving less appealing. However, it may weaken the company’s ability to influence the market if individuals continue to avoid spending and instead choose to save money.

However, some people have opted for a more traditional keeping technique- keeping cash at home. With so many individuals using software like Alipay and WeChat Pay, China has become generally digital. This is unusual.

Ms Chen and her family

Handout

Ms. Chen, a 32-year-old woman who runs a beauty salon in the northern province of Henan, claims to take the majority of her money from the bank each month and packs it in a carton. She did not want to disclose her first name. When it reaches 50, 000 rmb, she plans to return it to the lender as a fixed loan.

” In the past, I did n’t have any saving plan but still had some money left. Today, it has become more challenging to save”, she says.

First of all, China’s economic downturn has resulted in a major loss of clients for her beauty salon and a reduction in the amount of money her regular customers spend. Plus, Ms Chen and her partner are just children, which means they have to take care of their old families.

Ms. Chen worries that the couple’s two children might need money to ultimately purchase homes for them. In China, families often buy a house for their child when he marries.

By her calculation, Ms Chen and her husband have at least five million yuan in benefits. But she believes yet that will probably not suffice because she is pregnant once more.

” Having cash in hand makes me feel less anxious”, she says. ” I feel healthy and content to see bundles of banknotes thickening indefinitely.”