More than 40% of the Chinese consumers plan to increase spending in 2010, and an improved social welfare system is the strongest driver to prompt them to consume more, a MasterCard report has found.

A survey of 6,300 urban and rural subjects shows that over 50% of the urban respondents chose "improve social welfare" and "rein in housing prices" as their top two concerns; 47% ticked "reduced property taxes", 42% "resume the weeklong May Holiday", 40% "reduced personal income tax" and 33% "offer coupons for cars and appliance". Over 70% of rural respondents looked to a better social welfare system for larger expenditure.

Interestingly, 41% of urban respondents versus 59% of rural counterparts were planning to spend more in 2010; 18% of urban residents and 16% of rural dwellers would cut consumption, while 41% of urban residents and 25% of rural dwellers would keep their expenses unchanged.

Source: http://www.cs.com.cn/xwzx/03/200911/t20091119_2261627.htm