Build three to six months of essential expenses in accessible emergency savings
Keep three to six months of living costs readily available so job loss or illness does not force borrowing at rates around 18% or selling investments at a loss. Eligible Chinese bank deposits have deposit-insurance protection up to RMB 500,000 at one bank.
What it takes
No fee to save, but accessible deposits or money-market funds may earn less than riskier investments. Avoid spending the fund while building it.
What you may gain
An emergency reserve reduces the need for expensive credit or forced asset sales during unemployment or illness. See card and consumer-credit costs. China's deposit-insurance regulation provides a maximum RMB 500,000 payout per depositor at the same bank under the cited 2015 rule.
Context & considerations
Three to six months is a common rule of thumb without an original official or academic source identified here, hence grade C. Calculate from essential monthly spending, not income. This is not investment advice.
Research & references
State Council of China (2015). Deposit Insurance Regulations, Order No. 660, Article 5. https://www.gov.cn/zhengce/content/2015-03/31/content_9562.htm