Chinese Retail Stock Market Participants Signal Renewed Confidence
Chinese stock market participants signaled restored confidence in July as the country’s economic fundamentals and policies boosted equity markets, according to a industry survey.
Conducted by the China Securities Investor Protection Funds, the survey found that July’s investor confidence index for the A-Share markets stood at 59.6 on a scale of 100 pts, up 6% from June and + 1.9% from a year ago.
The domestic economic fundamentals index rose 7.8 pts from the previous month to 65.5 pts in July, the survey showed, citing upbeat major economic indicators, including second-quarter GDP, that point to a firming economy.
The survey also indicated improved confidence in government policies to boost the stock market with the domestic economic policies index reaching 70.2 pts in July, up 6.3 pts from June.
In June, a panic stock market selloff hit the country by surprise with the Key Shanghai stock index corrected by more than 30% from its 12 June high. Before the free fall began, the Shanghai composite had risen by 152% since July 2014 and nearly 60% since the beginning of this year.
The market has shown signs of recovery on the heels of government’s rescue measures, including the reduction of IPOs, bans on short-selling and introduction of a 6-month ban on big shareholders selling stocks.
Tuesday, China’s stock market ended a 3-day losing streak with the benchmark Shanghai Composite Index surging 3.69% to close at 3,756.54 pts.
By Xiang Bo
Paul Ebeling, Editor
HeffX-LTN
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