This has resulted in a further fall in the saving ratio, which appears to have been related to the substantial rise in the
value of household assets over the past year.
Households have healthy balance sheets (bank deposits are 50
percent of household assets, according to DSG Asia), and China still has the world's largest stash of foreign exchange reserves, according to data accessible via Bloomberg.
Since the early 1980s, the proportion of household financial assets held as deposits has fallen from about 50 per cent to below 30 per cent; this has been mirrored by a comparable rise in the
proportion of household assets held as claims on life insurance and superannuation funds (Graph 11).
With funds managers holding about 15 - 20 per cent of assets in domestic bonds, the change in the
composition of household assets has translated into higher demand for bonds — a demand which is no longer being met by government issues.
A year later, families in the program were no better off than they'd been before, and some were worse off — all in all, the Honduras project suffered a loss to the tune of — 198 % of its initial investment, based on
loss of household assets.
This has meant that the aggregate ratio of household debt to household income has trended upwards, as has the proportion of household income required to service the debt, and the gearing ratio (debt to
value of household assets).
The value
of household assets has also been growing solidly, particularly in superannuation funds and other investment products.
Investments in Land (property) & gold together can easily make up around 70 %
of all household assets.
If your teen is driving your vehicle, and your teen gets into an accident, then
all of your household assets can be considered fair game in a lawsuit.