CKGSB investor sentiment remains pessimistic about Chinese capital markets

BEIJINGMay 12, 2022 /PRNewswire/ — Investors remain pessimistic China’s A-shares stocks and real estate as well as investments in precious metals like gold are up 10.2%, according to the new quarterly Investor Sentiment survey from Cheung Kong Graduate School of Business (CKGSB). The survey, which surveyed 2,500 investors from 13 major cities in China found that about 60.9% of investors expect the shares of A-shares to rise. Only 55.9% of investors surveyed believed housing prices in first- and second-class cities will rise over the next 12 months, up from 69.4% at the end of 2020. Respondents remain consistent about expectations for China’s GDP growth at 5.4% and inflation at 2.7%.

Financial practitioners were more optimistic than retail investors: 79.7% of financial investors expected China’s A-shares are rising against 54.9% of retail investors. Investor expectations for Hong-Kong equities also diverged: 63.7% of financial investors expected an increase, compared to 41.2% of retail investors.

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

The findings of the Q1 survey are based on data collected in March 2022just before the negative impact of China’s strict COVID-19 measures were completely clear. According to 68% of investors surveyed, the pandemic will be the main factor affecting future investments.

“Omicron and geopolitical instability are two challenges unprecedented in the 40 years since reform and opening, surpassing the Asian financial crisis in 1998 and the subprime mortgage crisis in 2008. To reverse market pessimism, domestic policy adjustments need to be made,” says Liu JingProfessor of Accounting and Finance at CKGSB, who is leading the research.

The Cheung Kong Investor Sentiment Survey (CKISS) is a quarterly survey to measure investor sentiment and expectations China’s domestic stock market. It’s been running since January 2018† It is sponsored by Cheung Kong Graduate School of Business’ (CKGSB) Center for Investment Research and led by Doctor Liu JingCKGSB Professor of Accounting and Finance, and CKGSB researcher Chen Hongya.

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SOURCE Cheung Kong Graduate School of Business (CKGSB)

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