Chinese investors remain confident in Q2

(Xinhua)
Updated: 2009-07-29 11:42

BEIJING: China's investor confidence index rose to 122 in the second quarter from 111 of the first quarter, according to results of a survey conducted by ACNielsen and reported by the latest issue of CapitalWeek.

The investor confidence index, within a range from 0 to 200, refers to investors' expectation for investment in next three months. A reading of above 100 indicates positive while one below that level implies a declined confidence.

However, investors would not increase their investment despite their positive attitude towards the investment market, said the research, as the inclination index, reflecting investors' will of cash injection, declined to 108 from a 128 in the first quarter.

The investor confidence towards gold ranked the highest among all the investment products, as Chinese government announced its gold reserves surpassed one thousand tonnes in late April, said ACNielson.

Confidence in stock market rose from 117 to 130 while the inclination index increased to 124, indicating a trend of capital flow into stock market in the last quarter would continue in next three months.

Real estate market also received high expectation, with investor confidence index reaching 118 and the inclination index to 120 from 101 and 112 in the previous quarter, respectively.

Of investors from China's five major cities, citizens in Shanghai showed the strongest increase of investor confidence with the index rising from 92 in the first quarter to 126 in the second.

Home sales in Shanghai rose 54 percent year on year from in the April-May period, according to the National Bureau of Statistics.

The survey is the second of the serial surveys on China's investors confidence and inclination indices, which was entrusted by China Merchants Securities. The first one concerning statistics of the first quarter was released in May.