Chinese investor confidence rebounds
Is the worst of it over?
From the latest investor confidence report, it looks like the government may have succeed in making people feel secure enough to invest in the stock market again.
In July, the investor confidence index rose 6% from June to 59.6%, reported state-run news agency Xinhua on Wednesday.
The numbers come from a survey by the China Securities Investor Protection Funds, a state-owned fund set up to protect the rights of securities investors.
Year over year the index was up 1.9%. Measured on a 100-point scale, any number above 50 signifies confidence.
It looks like the government’s unprecedented efforts to stabilize the market is having some effect.
Since the Shanghai Stock Exchange Composite Index plunged 32% from June 12 through July 8, Beijing has cut interest rates, restricted initial public offerings, banned some short selling of shares, and told brokerages, corporate executives and pension funds to buy stocks.
The survey also said the domestic economic fundamentals index rose 7.8 points from the previous month to 65.5 points in July. It attributed the rise to upbeat major economic indicators.
Confidence in government policies to boost the stock market with the domestic economic policies index climbed 6.3 points from June to 70.2 points.
At Wednesday’s close, the Shanghai benchmark slid 1.7% to 3,695. It’s now rebounded 5.4% above it’s July low. The Shenzhen Stock Exchange Composite Index declined 1% to 2,128. The small-cap ChiNext Price Index fell 1.7% to 2,502 and Hong Kong’s Hang Seng Index inched up 0.4% to 24,514.