With CPI inflation at about 2 percent, real rates on saving deposits are now positive.

FORBES: China's Challenge: Balancing the State and Market

Low or negative real interest rates on deposits, including saving accounts, provides a low-cost source of funding for state-owned banks.

FORBES: China's Challenge: Balancing the State and Market

Some 60% of bank deposits and almost all saving accounts are in dollars.

ECONOMIST: Keeping the reform alive | The

The most fruitful reform, notes Lardy, would be to end financial repression by liberalizing interest rates, which would increase real rates on deposits, thereby decreasing saving if the income effect is strong, and increasing consumption.

FORBES: China's Challenge: Balancing the State and Market

Bank deposits, still the most popular way of saving, are also growing rather more slowly this year.

ECONOMIST: Paying dividends