FIRST AIRED: April 25, 2018

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Transcript

00:00:02
>> Welcome to the frontline of China's new spending boom. Like many of the country's small cities, Xinjiang isn't much to look at. But that doesn't matter to a new generation of consumers who are spending their parent's money to live the high life. Consumer growth in small cities like this is starting to out-pace big cities like Beijing and Shanghai.
00:00:22
Reuters' Stella Qiu travelled to Xinjiang to meet some of the so-called small town kids helping to drive China's economy.>> So what I have find out is that those millennials growing up with the Internet and having much time to kill in their hands, they actually, have high demanded for high quality goods and services.
00:00:44
From what I gathered, most of them have at least the three properties in this city. They travel abroad two to three times a year. Also they have their parents as their safety net.>> Small town spending is making a big difference. Morgan Stanley says China's private consumption market is set to more than double to $12 trillion by 2030, most of it from small cities.
00:01:06
Analysts say the trend is fueled by soaring rents and shrinking opportunity in the big cities, tempting more and more young people to stay in their hometowns. Global heavy hitters are following the money, with brands like H&M setting up shop in the hinterlands. Still, some of Xinjiang spenders say there's room to grown.
00:01:26
Like Lee Jao, who at 24 years old already owns four apartments.>>
FOREIGN]
> There aren't many brands here and most of them are local which I don't really like. So I prefer to do my shopping in the closest big city.>> Analysts say the spending boom in China's small cities is down to the investments of the older generation.
00:01:47
Many have cashed in on the property market and are now funding the flashy lifestyles of their children.