Surge in Chinese mainlanders buying insurance in Hong Kong; improving consumer confidence; real estate trends - Charts of the Week

China's top trends in under 3 minutes; week of June 10, 2024

"Charts of the Week" is Baiguan's series that features key data points to help you quickly grasp the general state of affairs in China in just a few minutes. We handpick the highlights of the data charts from a variety of sources, analyzing and delivering insights trusted by 100+ top institutional and corporate clients worldwide at BigOne Lab. Don't forget to subscribe before you continue reading!

Welcome to this week's edition of "Charts of the Week." In today's newsletter, I've selected 9 charts that highlight the latest consumer and social trends in China. These include the rising popularity of buying insurance, average salaries, and consumer sentiments around gold investment and saving. We'll also review recent trends in the real estate market following the announcement of supportive policies, just like we did in the previous posts in the series.

Buying insurance

Chinese households are seeking to lock in stable dividends and cash flow in expectation of the lower interest rate environment lasting longer. Buying insurance, especially life insurance, is a trend we observed throughout the second half of 2023, as we pointed out in our post-pandemic consumer study.

Hong Kong: In particular, more people are considering buying insurance in Hong Kong. According to the Hong Kong Insurance Authority, in the first quarter of 2024, mainland Chinese residents bought new insurance policies in Hong Kong worth HKD 15.6 billion, a 62% year-on-year increase, accounting for 24% of new policy premiums. The most popular products among mainland Chinese are dividend-paying whole life insurance (58.8%) and critical illness insurance.

Insurance stocks on the onshore A-share and Hong Kong exchanges have gained significantly since April following the first quarter's earnings.

Real estate

Transaction volume: China's real estate market continued to stabilize following the supportive policies announced during the Politburo meetings. As of June 1, our tracked panel of over 140 cities shows that the gross transaction value (GTV) has been increasing for 4 weeks. During the week ending June 1, the GTV of existing homes increased by 53% year-on-year and 8% week-on-week. The total areas of homes sold rose by 56% year-on-year and 3% week-on-week. Existing home transactions and property showings have rebounded to levels similar to the peak in March 2023.

Price: The transaction price of existing homes remains sluggish. In first-tier cities, the transaction price continues to decrease week-on-week. However, there are signs of stabilization and rebound in new first-tier cities such as Hangzhou, Changsha, and Xi'an.

Social sentiments: gold, salary expectation, and consumer confidence

To get a sense of what is offered, you are welcome to check out this older post in the same series: Charts of the Week. You can also get free access by sharing us.