In August, China will probably chalk up its 17th consecutive month of falling consumer prices. Boosting consumer spending on things like housing, cars and stereos is a key component of the government's efforts. But a closer look reveals the shortcomings of the attempt. For one thing, Shao and Xu actually purchased just two-thirds of their apartment. They couldn't afford to pay for the entire flat, and no mortgage was available to finance the piece they could not buy themselves.
Conventional mortgages are rare in China.
So, the couple's university chipped in one-third of the purchase price. Even if they owned the apartment outright, however, their right to sell it is open to question. In May, Beijing announced that private owners would be permitted to buy and sell property on a secondary market, but it is unclear how that policy will work in practice. Finally, the couple's spending spree appears to have been a one-off event. In part, that is to convince savers to take money out of banks and spend it.