Investor Confidence in China Hit 16-Month High in July
China's investors' confidence index, a diffusion index published by China Securities Investor Protection Fund Corporation, improved for the fourth consecutive month in July 2020. The index reached 64.7%, which was its highest level since March 2019.
The main driver of the index' positive development was the stock market sentiment. In July 2020, 68.8% of the respondents claimed optimistic assessment for the Chinese stock market, an increase from 67.5% in the previous month, while 59.1% expected a stock market rebound. On the other hand, the investors' assessment on market stability and equity valuation slightly worsen in July compared to the previous month.
Due to the negative impact on the COVID-19 pandemic the investors' confidence index dropped to 52.2% in March 2020, mainly due to the negative assessment on the economic fundamentals, before it has rebounded since April.
Further data and analysis on China’s economy is available on the CEIC China Economy in a Snapshot – Q3 2020 report.