By WANG HAO

Ji Jing, a 24-year-old sound engineer, works out a budget on each payday so as to make ends meet each month. Ji found work in Beijing after graduating from college, and now makes a decent 4,500 yuan a month. With 2,000 yuan going on car payments and 1,500 on rent, little remains each month. This does not concern him. "It doesn't matter. I love a free life, so I need a car." Ji's views are echoed by many young Chinese, who are breaking away from the Eastern tradition of saving money.

Buying gold is still a way of retaining the value of family property.

China's depositing rate is the world's highest. According to the State Statistical Bureau, China's bank savings stood at 8,700 billion yuan at the end of 2002, and hit 9,770 billion in the first half of this year, an increase of 265.5 billion yuan over the same period last year. But Chinese people's consumption mode and values are undergoing changes in recent years thanks to increases in income and consumption levels, as well as more options for investment. As the popular saying goes: "If you don't take care of your money, it won't take care of you."

China's economic growth and improvements in its social security system have reduced the costs of maintaining family property, establishing retirement funds, and funding education and medical care. Access to foundation, securities, futures, foreign exchange, real estate and gold trade have changed the tradition of putting all one's eggs in a single basket. According to Zhang Junru, vice president of the Xuanwu branch of China Agricultural Bank, all Chinese banks have launched financial products targeted at individuals. Bank loans for individual consumption, such as autos, housing, education and house renovation, are gaining momentum in recent years.

Many people apply for housing loans, indicating a shift in the culture from saving to borrowing.

Zhao Jianmin, 36, had worked for a moribund state-owned factory before he shifted to Ping An Insurance in 1996. At the end of that year, he spent his entire 30,000 yuan savings on stocks and shares, and bought more in the following years. Despite fluctuations in the stock market, he made a good profit, and feels that stock market speculation makes life more exciting. Now a department chief, Zhao invests 40 to 50 percent of his income, and deposits only a negligible amount in the bank. Asked why he doesn't keep cash handy for unexpected needs, Zhao replies: "Our ready cash is generally enough for daily needs. Should a big sum be required, we can withdraw investment from the stock market at any time. Putting all one's money in the bank is an out-of-date practice."

WANG HAO is a staff reporter for People's China

Appendix: Foreign Banks in china By the end of July, 2003, there were 184 operational units of foreign banks in China, including 151 branches. Since China joined the WTO, the authority has certified 37 more foreign banks to enter RMB business in Shanghai, Shenzhen, Tianjin, Dalian, Guangzhou and Qing Dao, and 12 foreign banks have been given the green light to do on-line banking. In addition, five foreign branch banks are opening QFII securities custodial businesses, and half of foreign banks in China are licensed to do full-scale foreign exchange business. By December 11 of this year China will further open to foreign banks in the RMB business with Chinese enterprises, when yuan business will be opened in Jinan, Fuzhou, Chengdu and Chongqing.