Younger generation rushes to buy on credit

Purchase now, pay later approach sees household savings rate fall

While older people in China typically believe that saving is a virtue, their children have other ideas. Many prefer to spend their money, and with new consumer credit services, they can easily buy now and worry about paying later.

A recent report from the People's Bank of China, the central bank, said that by the end of the third quarter, the total amount outstanding for over six months on credit cards reached 88 billion yuan ($12.7 billion), representing quarter-on-quarter growth of 16.43 percent.