Despite the global economic slowdown, bank deposits in Dongguan have been growing fast. According to data provided by Dongguan's Central Branch of China Bank, Dongguan's savings deposits in RMB and foreign exchanges totalled 719.69 billion RMB at the end of June. This was a 10.8% increase when compared with the same period last year. In just 15 months, Dongguan's deposit balance has surged impressively from 600 billion RMB to over 700 billion RMB.
The balance of savings deposits in RMB totalled 691.32 billion RMB with an increase of 4.6% over the beginning of 2012, while loans (in RMB) and all foreign exchanges reached 417.06 billion RMB. Overall, this is an increase of 12.9% over the same period last year.
In response, Lin Jiang (Dean of the economics department of Lingnan College of Sun Yat-sen University) said that the increase of savings deposits suggested that Dongguan's present economic situation was not too bad. Lin based this on the fact that the average income has increased slightly, which has in turn resulted in the natural growth of savings deposits. Lin also outlined an alternative theory suggesting the commodities markets in Dongguan could not satisfy demand, so people had no alternative but to put their money into savings. In this case, it indicates that the domestic market in Dongguan has not been fully explored, indicating growth weakness.
(By Stefanie Tan and Sev Pischl)