Business / Economy

BOCOM China wealth climate index slips to 5-year low

(Xinhua) Updated: 2015-10-10 17:13

BEIJING -- The Climate Index of China's Wealth released by Bank of Communications (BOCOM) fell to 111 in September, hitting a five-year low after two straight declines, said a BOCOM report Friday.

The index, down from 120 in July and 133 in May, is now at its weakest reading since Oct 2010 when the Shanghai-based bank started to publish the bimonthly report, which surveys well-off Chinese households on economy, income and investment.

A reading above 100 indicates wealth improvement, while that below 100 represents deterioration.

Three main sub-indices saw sharp falls, economic climate to 106, income growth to 120 and investment willingness to 103.

The survey solicited opinions from nearly 1,850 mainland families with annual after-tax incomes above 100,000 yuan (around $15,750) in five metropolises, including Beijing and Shanghai, and 80,000 yuan in 21 other major cities.

The indices further slipped as Chinese families felt the pinch from a volatile stock market, which dampened confidence, and looming downward pressure on the economy, the report said.

The falling indices reflect the grim economic outlook. China's factory activity picked up a bit in September but remained in contraction, while the market remained sluggish following plunges since June.

Bucking the trend, Chinese households became positive on the property market. Index on property investment intention rebounded to 101 in September from 100 in July, re-entering improvement territory after 18 months of contraction.

The report attributed the rise to easing government curbs on the real estate market. Home prices in some first- and second-tier cities have shown signs of recovery and will likely continue to pick up during the traditional peak season of October.

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