February 21, 2017
The easing of restrictions on stock index futures trading imposed during the 2015 market meltdown may signal that the authorities believe the market has finally stabilised.
Chinese consumers are not ready to get on board just yet; the FTCR A-share Buying Sentiment Index remains below 50. However, comparing household attitudes towards the stock market by their feelings towards the economic outlook shows that even the most negative are becoming less bearish. The benchmark index is up 18 per cent from its 2016 low — including 5 per cent so far this year — and we think Chinese consumers, whatever their views on the economy’s health, have taken note.
However, prevailing negativity towards A-share investing among Chinese consumers shows the lingering impact of the market’s collapse 18 months ago. Consumer sentiment may be at two-year highs but the Shanghai Composite Index is still 37 per cent below the market’s 2015 peak.
— Ben Heubl, Data Visualisation Analyst
| FT Confidential Research is an independent research service from the Financial Times, providing in-depth analysis of and statistical insight into China and Southeast Asia. Our team of researchers in these key markets combine findings from our proprietary surveys with on-the-ground research to provide predictive analysis for investors. |
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