But in recent years, some of China’s policy tightening measures against private enterprises have raised concerns and undermined the expansion of the middle class, as their careers and economic prospects mainly depend on the private economy.
This demographic dividend is disappearing due to China’s rapidly ageing population. Both labour shortages and social security pressure amid the ageing population may be a hindrance to the growth of the middle class in China, Chiu added.
The depreciation of the yuan is also affecting the purchasing power of the Chinese middle class.
China’s yuan has been weak against the US dollar since last year. It hit a 16-year record low against the US currency earlier this month before paring some losses. The average exchange rate of the yuan to the dollar was about 6.5 in 2017, compared to the current rate of around 7.3.
Chinese property investors…
