The United Nations suggested that China is one of the most unequal societies in terms of wealth distribution, as China's Gini coefficient - a widely accepted measure of income inequality - has probably reached 0.55, while the international alert line is 0.4.
Experts say that China's low-income level and the widening wealth gap are exerting a negative influence on the country's overall economic development.
"Limited increases in personal income would lead to weak domestic consumption, which is not healthy for sustainable economic development," NBS statistics expert Liang Da wrote in a report.
"Without the driving force of domestic consumption, the economic growth would only result in overcapacity, overstock, decreased efficiency and, finally, economic recession," he added.
But for people with a high-income and sufficient cash-flow, their spending is not necessarily promoting domestic consumption.
"Many of my friends would invest 60 to 70 percent of their income in real estate, equities and so on and the smaller part would be used to improve their quality of life," said Shi Wanlin, senior partner at China's leading law firm, Dacheng Law Offices.
Influenced by previous experience of studying and working in France, Shi considers himself to be a romantic and would spend as much as 70 percent of his 10 million yuan annual income on enjoying life.
"But there is a considerable amount of overseas spending because you can get products of excellent quality at more reasonable prices and usually receive better service," Shi added.
The concentration of capital in a few hands has fostered speculation in the housing market, heating it up over the past few years. As a result, many young people's living standards are compromised with mortgage stress on their shoulders.
10th China Int'l Automobile Exhibition kicks off in Guangzhou
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