BEIJING, May 12, 2022 /PRNewswire/ -- Investors remain pessimistic on China's A-shares stocks and real estate as investment in precious metals such as gold increases by 10.2%, according to the new quarterly Investor Sentiment survey from Cheung Kong Graduate School of Business (CKGSB). The survey, which polled 2,500 investors from 13 major cities in China found that about 60.9% of investors expect A-shares stocks to rise. Only 55.9% of the investors polled believed house prices in first- and second-tier cities will rise in the next 12 months, down from 69.4% at the end of 2020. Respondents remain consistent on expectations for China's GDP growth at 5.4% and inflation at 2.7%.
Financial practitioners felt more optimistic than retail investors with 79.7% of financial investors expecting China's A-shares to rise compared to 54.9% of retail investors. Investors' expectations for Hong Kong stocks also diverged with 63.7% of financial investors expecting an increase compared to 41.2% of retail investors.
The proportion of investors willing to invest in wealth management and stable funds increased to 83.4%, up from 75.9% the previous quarter. Only 37% of people polled were willing to invest in stocks and funds, a decrease from 45.2% in the previous period.
The Q1 survey findings are based on data collected in March 2022, just before the negative impact from China's strict COVID-19 measures were fully apparent. According to 68% of investors surveyed, the pandemic will be the most significant factor affecting future investment.
"Omicron and the geopolitical instability are two challenges that are unprecedented in the 40 years since reform and opening up, surpassing the Asian financial crisis in 1998 and the subprime mortgage crisis in 2008. In order to reverse the pessimism in the market, domestic policy adjustments need to be made," says Liu Jing, Professor of Accounting and Finance at CKGSB, who leads the research.
The Cheung Kong Investor Sentiment Survey (CKISS) is a quarterly survey to gauge investor sentiment and expectations in China's domestic equity market. It has been running since January 2018. It is sponsored by Cheung Kong Graduate School of Business' (CKGSB) Center for Investment Research and led by Doctor Liu Jing, CKGSB Professor of Accounting and Finance, and CKGSB researcher Chen Hongya.
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