Though the financial world looked on in horror at the collapse in China’s stock markets last month, confidence among Chinese investors surged during the month, apparently.
China’s benchmark Shanghai Composite index fell 14.4%, but a poll conducted by China Securities Investor Protection Funds showed investor confidence rising to 59.6 in July, up 6% on the previous month, according to state-run newspaper Xinhua.
China Securities Investor Protection Funds is a wholly state-owned fund, according to the company’s website.
From a year earlier confidence increased a more measured 1.9%.
Upbeat major economic indicators, including second-quarter GDP, were cited as the reasons for the increase.
Confidence in the domestic economy rose dramatically, with the survey’s economic fundamentals index rising 7.8 points to 65.5.
Alongside the improvement seen in the economy, confidence was also boosted by the government with the separate domestic economic policies index reaching rising 6.3 points to 70.2 points.
Perhaps, given the enormous raft of measures rolled out by the government to support the nation’s stock market shown in the table from NAB below, it’s little wonder investor confidence was restored.
Month-to-date the Shanghai Composite is currently up 2.10%.
You can read more at Xinhua.