Economists attribute the positive outlook and confidence of Chinese people on great stock market performance. (Photo : Google)
More and more Chinese households are engaging with the local stock markets, given that it has steadily shown a good performance over the recent years. This has led to the significant jump of China’s Wealth Index to 133, the highest in two years.
Compiled every two months by global information and measurement company Nielsen and the Bank of Communications, the China Wealth Index is a rather accurate and up-to-date reflection of Chinese sentiments concerning the national economy.
Last March, the index stood at 128, which was considerably less than the index reading in January, which was measured at 132. Nothing to be disappointed here; a reading above 100 still reflects optimism.
Economists attribute the positive outlook and confidence of Chinese people on great stock market performance.
"The dazzling stock market rally in the past two months has made people enthusiastic about investment," said Lian Ping, who serves as the Chief Economist at the Bank of Communications.
Due to households investing and therefore profiting in the stock market, some people are interested in purchasing real estate once again, according to Lian.
"There have been signs of a recovering market after the authorities relaxed curbs on the housing market in late March."
The survey also showed a 75-percent increase in households that have bought shares. Willingness to invest in fixed assets like properties also rose to 100 from 94 in March; a first in a rather stagnant period of six months.
"We have seen households more confident of the future and ready to invest more in either the stock market or fund market," said Lian.
