Bangkok--16 Jul--Aziam Burson Marsteller
ING Investor Dashboard Sentiment Index for China rises for the fourth consecutive quarterMore investors are willing to adopt an aggressive investment strategy
Key Highlights of the Quarterly ING Investor Dashboard Survey
China index rises to 158 for Q2 2009, just a fraction away from the high in Q3 2007 at 164, from 124 for Q1 2009
Sentiment remains buoyant over government’s ability to meet economic growth target and amidst market rally
Chinese investors adopt aggressive investment strategy and indicate they will invest more in Q3 2009
China ranks as the second most optimistic market in Asia after India
China and India drive big surge in overall Pan-Asia Index
ING, the global financial services group, today released data from its quarterly ING Investor Dashboard Survey which shows a further increase of 27% in investor sentiment in China for Q2 2009, moving the index close to the “very optimistic” zone. Sentiment among Chinese investors rises to 158 for Q2 2009 from 124 for Q1 2009. For the first half of 2009, China’s sentiment was up 53%. China ranks as the second most optimistic market in Asia after India.
Both China and India have helped drive the overall pan-Asia (ex-Japan) ING Investor Dashboard Sentiment Index significantly higher to 132 for Q2 2009 from 85 for Q1 2009, a 55% surge. This is the largest quarter-on-quarter increase in investor sentiment since the Index was introduced in Q3 2007, moving the Index from the “neutral” into the “optimistic” category.
The ING Investor Dashboard is the first quarterly survey in the Asia Pacific region that provides a pan-Asia (ex-Japan) investor sentiment index. The survey is conducted quarterly across 13 markets* in Asia Pacific, and not only provides market insights on investor attitude and outlook but also allows each market to be benchmarked and tracked against the overall investor sentiment across Asia using the pan-Asia index.
China investor sentiment maintains upward momentum on positive economic outlook and market rally
China’s investor sentiment continues to be buoyed by signs of improvement in the domestic economy as a result of the government’s effectiveness in implementing measures to help the local economy withstand the global economic downturn. In a region where most markets are experiencing a recession, only China and India are on track for strong economic growth.
Chinainvestors’ view Q2 09 Q1 09
Economic situation improved 77% 42%
Economic situation will improve in the next quarter 78% 56%
China will meet or exceed its target of 8% GDP 78% --
*(average expected GDP of 9.4% for those who expect GDP to exceed 8%) (% of China investors)
In the survey, 90% of investors also indicated that they are seeing the positive effects on the economy as a result of the government’s 4 trillion-yuan stimulus package.
Commenting on the results, Mr. Michael Chiu, Senior Investment Manager, ING Investment Management Asia/Pacific, said, “While other governments have also implemented stimulus packages to help the local economy mitigate the negative impact of the global recession, China’s government has proved to be the most effective in making such measures work. And this has been reflected in improving economic indicators such as the Purchasing Managers’ Index, which in June showed a fourth month of consolidation above the watershed mark of 50, and solid domestic consumption figures. It’s not surprising therefore to see such a high level of confidence among investors in China.”
“We will likely see Q2 GDP expand from Q1’s 6.1%, and growth to be more apparent in the latter part of the year as the measures to boost consumption and investment continue to take effect. We expect China to meet its target of 8% GDP growth this year.”
Like many of their counterparts in Asia, sentiment among Chinese investors has also been fuelled by the run-up in the financial markets since the start of the year.
View on the Stock Market for Q3 09 Stock market remains at current level or rises* Expected increase in the stock market
Pan-Asia (ex-Japan) 75% 9.2%
China 88% 9.9%
Hong Kong 69% 10.5%
Taiwan 70% 10.3%
India 100% 10.3%
*(% of investors)
* The survey was conducted across 13 markets in Asia Pacific: Hong Kong, China, India, Indonesia, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand, Japan, Australia and New Zealand. The pan-Asia investor sentiment index includes all Asia markets and excludes Japan, Australia and New Zealand.
View on the Stock Market for Q3 09 Stock market remains at current level or rises* Expected increase in the stock market
Pan-Asia (ex-Japan) 75% 9.2%
China 88% 9.9%
Hong Kong 69% 10.5%
Taiwan 70% 10.3%
India 100% 10.3%
*(% of investors)
The survey also shows that Chinese investors are the least worried among their counterparts in Greater China about job security.
Negative impact of economic slowdown on job security Q2 09 Q1 09
Pan-Asia (ex-Japan) 49% 61%
China 42% 58%
Hong Kong 59% 61%
Taiwan 69% 75%
India 7% 14%
(% of investors)
In the region, only the investors in India have consistently remained more optimistic than those in China, after a resounding victory by the Congress-led coalition led investors there to be bullish about a favourable investment climate leading to further economic growth.
China investors the most aggressive in investment strategy in Asia
The survey suggests the Chinese investor’s risk appetite has increased, with 57% in Q2 saying they will invest more in reaction to the economic slowdown compared to 33% in the previous quarter. China also has the highest proportion of investors who describe their investment strategy as aggressive.
Investors holding aggressive investment strategy Q2 09 Q1 09
Pan-Asia (ex-Japan) 18% 15%
China 40% 30%
Hong Kong 25% 24%
Taiwan 19% 14%
India 21% 10%
(% of investors)
As a result of strong returns on investment in Q1 2009, more investors are also upbeat about their ROI in the coming quarter, with 77% saying they expect that to increase, versus 56% in the previous quarter.
The survey also shows that China’s investors are upbeat about the property market, with 53% saying in Q2 that they expect property prices to rise, compared with 27% in the previous quarter. As a result, 26% say they will invest or invest more in residential real estate, compared to 19% in the previous quarter.
According to Mr. Oscar Leung, Senior Investment Manager, ING Investment Management Asia/Pacific, “The property market has rebounded because we have seen the rate cuts in the mainland filter down more quickly to the buyer than anywhere else.”
“The market consolidation we’re seeing in early Q3 2009 will present buying opportunities for investors who are convinced of the long-term growth prospects of China versus other economies. We are biased towards the domestic-related sectors as opposed to the export-related sectors. We also believe that as a result of the credit-easing measures in China, we will see a recovery in earnings among the banks, insurance and property companies during the earnings season in August,” he added.
Like other Asian investors, Chinese investors continue to monitor the US economy and its impact on their investment decisions. However, despite recent indications that the worst is not over yet for the US economy, fewer investors expect to see a negative impact from the US on their investments.
Negative impact of US economy on investments Q2 09 Q1 09
Pan-Asia (ex-Japan) 39% 50%
China 37% 47%
(% of investors)
For detailed (high-resolution) data charts on the ING Investor Dashboard Sentiment Index, please download the results presentation from: http://www.ing.asia/investor_dashboard
Press enquiries
Tony Wong
ING Asia/Pacific
+852 3762 8292
[email protected]
Lei Zeng
Burson-Marsteller Beijing
+86 10 5816 2611
[email protected]