(ECNS) -- The average assets of a Chinese family reached 208,883 yuan ($29,600) in 2018, up 7.49 percent over 2017, with home assets comprising a large part of the total wealth, 71.35 percent in urban areas and 52.28 percent in rural areas, according to a study by China's Economic Daily.
Over 93 percent of households own one home, while 3.82 percent have two. The increasing value of homes, up 10.3 percent, is the major reason for rising family wealth, accounting for 91 percent of the growth.
The report found a continued gap between families in urban and rural areas where assets average 292,920 yuan and 87,744 yuan, respectively.
Family financial assets are predominantly held in cash and bank deposits, which make up around 88 percent, said the report, showing a significant lack of diversification, a structure that is not good in avoiding risk, according to experts.
In comparison, among 35 members of Organization for Economic Co-operation and Development, only eight countries reported that cash and deposits accounted for half of the financial assets in a family.
Chinese families prefer saving out of concern over potential medical costs, pensions and their children’s education. Over 64.7 percent said they don't like any risk in making an investment decision, which means they can't accept a possible loss of the principal amount invested.
The study also showed over 70 percent of respondents used digital payments in eastern cities but less than 30 percent in rural areas.