The Coronavirus outbreak has turned the lives of billions of people upside down across the globe, shaking the world economy and job security. The virus outbreak has already critically damaged many industries, leaving countless numbers of people out of work. However, there will be sectors and companies that may profit and expand during this crisis. This aside the harsh changes this situation has caused will leave a lasting impact on the way people look at their finances in the future. Early information out of China is beginning to show signs of this already.
Almost 75% of Chinese people are planning to increase their savings in the future, according to information collated by experts. Moreover, over half of them plan to change their investment portfolio to be more balanced.
Which Investments Are on the Rise?
Before the coronavirus outbreak, the Chinese considered several key factors for their regular savings. The Fidelity International and Ant Fortune 2019 China Retirement Readiness Survey showed that, 60% of them said that providing a comfortable life for their parents was their main goal for saving money.
Another 64% of those asked wanted to be able to provide a high level of education for their children. Another key factor was Investing in a career path or starting up a new business was also a common reason on the list of financial priorities for savings. Over 45% of Chinese saved for their own retirement plans.
The Statista and The Economic Observer data suggest that the coronavirus outbreak has changed how Chinese people view their investment planning. The statistics show during the outbreak that around 43% of them have increased their investments in a diverse financial product, including insurance policies, saving accounts, and pensions plan.
Nearly 40% have also invested in traditional banking funds, while 30% focused on their bank savings. 25% had a preference for Government bonds, Stocks, Gold and other precious metals, and coming in at 12%, and 12%, respectively. The survey indicates a few Chinese investors are looking at putting their cash into foreign exchange and real estate.
What Will the Chinese Invest in After the Outbreak.
The Statista information indicates that along with increasing their savings and changing investment portfolios, most Chinese will also purchase additional insurance policies after the coronavirus outbreak. In a major turn around in thought process over 75% of people asked said insurance was now their top financial priority for the future.
The 2019 Statista Survey on Insurance Industry in China showed that even before the pandemic, more than 50% of Chinese who took out insurance policies was to protect themselves against the high costs of medical care for treating chronic diseases.
Nearly 42% of those asked are planning to increase their savings in their bank accounts after the coronavirus outbreak, while over 32% will invest in bank financial products. The other areas of investments for the future are Bank funds 25%, investing in stocks 14% and gold 10%.
