CKGSB Investor Sentiment Remains Bearish in Chinese Capital Markets

BEIJING, May 12, 2022 /PRNewswire/ — Investors remain pessimistic about China A-shares and real estate as investments in precious metals such as gold rose 10.2%, according to the new quarterly investor sentiment survey from the Cheung Kong Graduate School of Business (CKGSB). The survey, which interviewed 2,500 investors from 13 major cities in China found that around 60.9% of investors expect A-shares to rise. Only 55.9% of investors surveyed believed house prices in first- and second-tier cities would rise over the next 12 months, up from 69.4% at the end of 2020. Respondents remain consistent on expectations regarding China 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 A-shares rise over 54.9% of retail investors. Investor expectations for hong kong stocks also diverged, with 63.7% of financial investors expecting a rise versus 41.2% of retail investors.

The proportion of investors willing to invest in wealth management and stable funds increased to 83.4% from 75.9% in the previous quarter. Only 37% of respondents were willing to invest in stocks and funds, down from 45.2% in the previous period.

The results of the Q1 survey are based on data collected in March 2022just before the negative impact of China the strict COVID-19 measures were fully apparent. According to 68% of investors surveyed, the pandemic will be the most important factor affecting future investments.

“Omicron and geopolitical instability have been two unprecedented challenges 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 of the market, domestic policy adjustments need to be made,” says Liu Jingprofessor of accounting and finance at CKGSB, who leads the research.

The Cheung Kong Investor Sentiment Survey (CKISS) is a quarterly survey aimed at assessing investor sentiment and expectations in China domestic stock market. It has been running since January 2018. It is sponsored by the Center for Investment Research at the Cheung Kong Graduate School of Business (CKGSB) and led by Dr. Liu JingProfessor of Accounting and Finance at CKGSB and Researcher at CKGSB Chen Hongya.

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SOURCE Cheung Kong Graduate School of Business (CKGSB)

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