A rush to purchase Chinese government treasury bonds has exceeded all expectations. The sales period was expected to run from April 10 to 19, but it took only 90 minutes for all of the bonds to be sold out.

China issued 20 billion yuan ($3.1 billion) in three-year treasury bonds at an annual interest rate of 4 percent, and another 20 billion yuan in five-year treasury bonds. During the first day of sales, some offline outlets didn't even have time to complete their first transaction before the exhaustion of the total quota through online sales, and a large number of people who had been waiting outside commercial banks for hours were left empty-handed.

This triggered heated discussion online in the following days, with some wondering why treasury bonds were suddenly so sought-after, following years of relative obscurity.

However, it's easier to understand if we recognize that investment channels for people in China have narrowed recently following a series of interest rate cuts, the stock market slump, and the general decline of yields from financial products offered by commercial banks. For citizens without professional financial knowledge, treasury bonds that offer a stable yield of around 4 percent are one of the best choices to preserve or increase the value of their assets.

As China's middle class has grown, the country has found it difficult to offer enough investment channels for them. Some people used to simply deposit money in commercial banks and got only a slender return, but these returns are now even smaller following several interest rate cuts by the central bank, prompting a rethink for many people.

New deposits by Chinese residents in 2015 totaled more than 4 trillion yuan, showing the large potential for Chinese people's investment capacity. This has also fuelled a scramble for all that cash, including the rise in the country's peer-to-peer (P2P) lending sector, which theoretically offers investment channels for citizens while also providing funding for the real economy. However, numerous problems have emerged at P2P firms, suggesting the system is still immature.

It is understandable that some experts have suggested the country should encourage people to invest more and accept higher leverage to boost the development of industries such as real estate amid the current economic uncertainty. But although there is a need to broaden investment channels, there is no short cut.

What the country may need to do is accelerate its financial reforms by introducing more competition into the country's financial sector, while urging Chinese financial institutions to offer more products and services. Only if there are more high-quality financial products for people to choose from can individuals' investment return to a rational state, helping to avoid a repeat of cases like the rush to purchase treasury bonds. What is more important is promoting reforms for readjusting the income distribution system and improving the social security network to boost individuals' consumption.

It is not easy to convert people's investment capacity into consumption demand, but there is no doubt that the economy could get considerable support if the country succeeds in this area.

The author is a reporter with the Global Times. bizopinion@globaltimes.com.cn