China will see five major trends from August

 Direct translation

Everyone, please be prepared in advance. If everything goes well, starting in August, China will see five major trends

Editor: Ye Jinghan / Source: Zhang Ping, Pingshuo Finance Reprints / https://www.aboluowang.com/2025/0731/2255398.html

As we enter 2025, many people feel that life is more stressful than before. This is primarily reflected in three key areas: ① Income growth has slowed across the board, even declining. ② Jobs are becoming increasingly difficult to find, forcing many young people to work as food delivery drivers, couriers, or ride-hailing drivers. ③ Falling housing prices across the country have caused many middle-class families to rapidly lose their assets, while still struggling to meet the pressure of monthly mortgage payments. In short, life has been difficult for most people in the first half of this year.

Facing the current domestic economic and social situation, industry insiders have suggested that starting in August, five major trends will emerge in China, and everyone should be prepared. Let's take a look.

Trend 1: AI is coming to take over job

Starting this year, many jobs have been unnoticed by AI robots. For example, customer service representatives, restaurant waiters, bank lobby managers, taxi drivers, and so on. It is expected that by the second half of the year, more and more manufacturing companies will replace assembly line workers with industrial robots.

Furthermore, some bank tellers will be replaced by smart ATMs. Smart ATMs can handle various transactions 24 hours a day, significantly reducing the probability of errors. Judging from the current situation, AI is poised to take over this market.

Trend 2: A declining auto price trend is forming

Since 2025, dozens of domestic and foreign auto brands have been offering price cuts and promotions. Domestic mid-range cars typically see price reductions of 15,000 to 20,000 yuan, while imported luxury cars have seen price cuts of up to 90,000 yuan. The price war in the auto market is expected to continue in the second half of the year. Three factors are driving the price decline:

① Tech companies like Xiaomi and Huawei have entered the auto industry, intensifying competition. Major auto brands have been cutting prices and promoting sales. ② With middle-class income growth slowing, car purchasing demand is shrinking. ③ The influx of new energy vehicles and gasoline-powered vehicles has led to a supply oversupply in the auto market, making price cuts and promotions inevitable.

Trend 3: A massive deposit shift becomes a trend

Starting in 2025, a large-scale shift in household deposits will occur. The latest data from the People's Bank of China shows that in the first five months of 2025, household deposits saw a massive outflow of 2.46 trillion yuan, equivalent to 16.3 billion yuan in cash disappearing from banks every day. In the same period last year, there was a net increase of nearly one trillion yuan. The main reason for this massive outflow of household deposits is the declining interest rates on bank deposits, which have reached record lows.

This has led many depositors, unable to accept such low interest rates, to withdraw their savings for investment and consumption. However, investments in the stock market, funds, and bank wealth management products currently carry significant risks, so caution is advised, as otherwise, significant investment losses are likely.

Trend 4: Marriage is no longer a standard for young people

In recent years, the number of marriages in my country has shown a rapid decline. According to data released by the Ministry of Civil Affairs, the number of marriage registrations nationwide in the first quarter of 2025 was 1.81 million, a decrease of 159,000 from the same period last year. The reasons for young people's reluctance to marry are: ① Many young people suffer from unstable incomes and precarious employment. They feel they can barely support themselves and therefore don't consider marriage.

② Many young people worry that after marriage, they'll have to pay mortgages, support a family, and raise children, significantly reducing their quality of life. They believe the freedom of single life is preferable. As more and more young people no longer view marriage as a lifelong destiny, a decline in the number of marriages is inevitable.

Trend 5: Housing prices will diverge across regions

China's housing prices will begin to decline in 2022, initially in second- and third-tier cities like Zhengzhou, Tianjin, and Shijiazhuang. After 2023, first-tier cities like Shanghai and Shenzhen will also see a decline. The trend of housing price adjustments in the first half of 2025 suggests that the decline in second- and third-tier cities, which previously experienced significant housing price declines, will gradually slow.

It is precisely in Shanghai and Shenzhen, previously resilient cities, that prices will experience a rebound. The decline will likely begin in the suburbs, then spread to older, dilapidated, and smaller properties in the city center, and finally to new homes in the city center. Eventually, the myth of rising housing prices in first-tier cities like Shanghai and Shenzhen will come to an end.