CKGSB Survey Finds a Negative Investor Sentiment Despite COVID-19 Recovery

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Cheung Kong Graduate School of Business (CKGSB)

Jun 16, 2020, 09:02 ET

BEIJING, June 16, 2020 /PRNewswire/ -- Investor sentiment in China has become relatively negative, as the Cheung Kong Investor Sentiment Survey (CKISS) released findings of its May 2020 survey results. It reveals a pessimistic view on the future trends of both A-shares, with an expected rate of return of -1%, and housing prices, with expected return dropping to 1.6%, and lowered expectations of economic growth. This sentiment can also be seen in the choice of investments, with a stronger desire to invest in conservative wealth management, and being bearish on real estate and overseas investments. Overall expectations on inflation and exchange rates remain relatively stable.

The Cheung Kong Investor Sentiment Survey (CKISS), a quarterly survey of investor sentiment and expectations of China's capital market, is based on a large sample size from 13 major cities in China. The findings are gathered from questionnaires on investor sentiment collected monthly, newly released financial reports of listed companies, and the latest macro data of both Chinese and overseas capital markets.

The survey also revealed that respondents' consumption intentions remain weak on non-essential social activities, demonstrating the essential role that people's psychology plays in the demand side of the economy, and that effective control of the pandemic is of paramount significance to easing people's worries and fears. 43% of respondents indicate a reduction in living expenses and 68% indicate they will pay more attention to investing in their personal health.

Dr. Liu Jing, Professor of Accounting and Finance and Associate Dean of CKGSB and Director of CKGSB's Center for Investment Research, who leads the research said, "Investors should increase their gold holdings to mitigate or avoid potential risks. A-shares and the Hong Kong stock market have a good price-performance ratio, and may perform better if the government enhances its stimulus plan. Furthermore, technology driven sectors are promising and have indirectly proved their robustness during the pandemic."

For the full survey results, please visit: https://english.ckgsb.edu.cn/blog/ckgsb-survey-finds-a-negative-investor-sentiment-despite-covid-19-recovery/

About Cheung Kong Graduate School of Business (CKGSB)

Cheung Kong Graduate School of Business (CKGSB) is the preeminent choice for management education among influential business leaders and a new generation of disruptors in China. Since its establishment, CKGSB has aimed to cultivate transformative business leaders with a global vision, a humanistic spirit, a strong sense of social responsibility and an innovative mind-set to embrace innovation and strive for the social good.

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