The distribution of savings in China  People outside China need a better insight into the high savings rate in China. The general view is that China consumes too little and has to consume more. The following chart shows that the income distribution during China’s economic transition has contributed to the savings pattern.
Yet, the inter-bank money market indicators showed that the flow of liquidity in inter-bank money market has squeezed. The volume of inter-bank money market has declined from its normal level of around Rp. 10 trillion to below Rp. 5 trillion. The interest rate spread has also widened significantly.