Interesting story in the FT suggesting Chinese consumption might be 10-12% higher than believed due to hidden money from high earners, misclassified investment and housing.
Each year, official data show investment at close to 50 per cent, savings at about the same level and consumption at about 35 per cent. But what if the official data were wrong? That is the intriguing claim by two academics, Jun Zhang and Tian Zhu, respectively of Fudan University and China Europe International Business School, who argue that consumption has been consistently underreported.