Poring over Chinese bank-account and income data calculated that Chinese households have indeed built up excess savings, to the tune of $720 billion.
“Those calling for a mega-surge of Chinese pent-up demand,” the Nomura economists said, “should be careful what they wish for.”
In China, the reopening of the economy is coming at a time when its central bank is in easing mode—potentially making it all the more inflationary.