China Consumer Confidence Fell in February with Stock Market Fall and Snow
Storms; Investment Confidence Rebounded
SHANGHAI, China, Feb. 26 /Xinhua-PRNewswire/ -- Xinhua Finance eziData
China Consumer Confidence Index (CCCI) was updated today, with the survey
results showing that consumer confidence fell by another one point to 95.8 in
February after a stabilization in January, affected by the sharp stock market
falls starting mid-to-late January and the snow storm disasters in the
southern part of China right before the Chinese New Year.
Consumer sentiment on current conditions fell 1 point in February, led by
a fall in the purchase intention for durable goods probably caused by the fall
in the stock market. Current personal finances, on the contrary, improved for
the second consecutive month. Consumer expectations fell further from their
peak in July, dropping 0.9 point in February. Among the three components of
the overall expectations index, both the index measuring personal finances in
one year and the index measuring business outlook in one year fell, while the
index measuring business outlook in five years rose slightly.
Under the support of the Xinhua Finance family, Xinhua Finance eziData
China Consumer Confidence Index is produced monthly by eziData, a local
provider of China consumer data, and in association with Dr. Richard Curtin.
Dr. Curtin is Research Professor and Director of the Consumer Sentiment
Surveys at the University of Michigan's Institute of Social Research. The
survey this month was conducted through 1,541 telephone interviews from
February 1 to 4, and 15 to 17, 2008 (avoiding the Chinese New Year holidays).
April 2007 survey results are set as the benchmark value of 100. More on the
survey methodology can be found in the accompanying section.
The sharp stock market falls after mid January had caused significant
losses to the investment returns on the part of the consumers, with a sharp
month-on-month drop in cumulative 12-month investment returns only next to the
drop seen in November 2007. However, consumer's expectations on the future of
the stock market did not collapse in February. Instead, it rebounded slightly
after a plunge posted the month before, suggesting sufficient confidence among
average investors in the current stock index for a rebound.
As the government control on the real estate market deepened, overall
consumer sentiment on house buying in the year ahead plunged in February,
indicating a further decline on the part of the buyers.
Consumer sentiment in February failed to retain the rebounding trend shown
in January and fell in all three major cities, with the largest drop occurring
in Guangzhou.
Sentiment among Beijing consumers plunged by 3.1 points to 96.3 to create
a record low, with both current conditions and future expectations falling.
Sentiment among Shanghai consumers remained the lowest among the three
major cities for the third month in a row, with a 1.9-point drop to reach
92.8,
as an improvement in current conditions -- which was the second rise in a row
-- failed to offset a drop in future expectations.
The largest fall in consumer sentiment in February occurred in Guangzhou,
with a 4.5-point plunge to reach 93.5. Again, both current conditions and
future expectations declined, with all the five components constituting the
overall consumer confidence index dropping.
As neither the stock market falls nor the snow storms are likely to
continue in the long run, it is expected that the consumer confidence has
reached its bottom in February. Should no emergencies occur in the short run,
the confidence is likely to rebound in March.
To find more about CCCI or subscribe to a full version of the survey,
please contact us via info@eZiData.com
Methodology
Xinhua Finance eziData China Consumer Confidence Index is produced in
association with Dr. Richard Curtin, Research Professor and Director of the
Consumer Sentiment Surveys at the Institute of Social Research, University of
Michigan. The index is based on a monthly survey of around 1,500 Chinese
households via stratified random sampling in 50 representative cities across
East, Middle and West China using the same methodology as is used by the
University of Michigan. All data is collected via computer assisted telephone
interviewing (CATI). Index of April 2007 survey is set as the benchmark (100).
Notes to editors:
About Xinhua Finance Limited
Xinhua Finance Limited ("XFL") is China's premier financial information
and media service provider and is listed on the Mothers Board of the Tokyo
Stock Exchange (symbol: 9399) (OTC ADRs: XHFNY). Bridging China's financial
markets and the world, Xinhua Finance's proprietary content platform,
comprising Indices, Ratings, Financial News, and Investor Relations, serves
financial institutions, corporations and re-distributors worldwide. Through
its subsidiary Xinhua Finance Media Limited (NASDAQ: XFML), XFL leverages its
content across multiple distribution channels in China including television,
radio, newspaper, magazine and outdoor media. Founded in November 1999, XFL is
headquartered in Shanghai, with offices and news bureaus spanning 11 countries
worldwide.
For more information, please visit http://www.xinhuafinance.com .
About eziData
eziData is a local provider of China consumer data, serving both financial
and consumer market participants. It aims to serve global and local business
professionals with decision-making tools that relate to consumption in China
and conform to international standards. eziData's comprehensive portfolio of
high-quality consumer data products, which includes a structured real-time
databank, delivers a broader and more insightful view of the market. For more
information, please visit http://www.eziData.com .
For further information, please contact:
Ms Joy Tsang
Xinhua Finance
Tel: +86-21-6113-5999
Mobile: +86-136-2179-1577
Email: joy.tsang@xinhuafinance.com
Mr. Scott Zhang
Xinhua Finance
Tel: +86-21-6113-5996
Email: scott.zhang@xinhuafinance.com
SOURCE Xinhua Finance Limited
Ms Joy Tsang, +86-21-6113-5999, or mobile, +86-136-2179-1577, or
joy.tsang@xinhuafinance.com, or Mr. Scott Zhang, +86-21-6113-5996, or
scott.zhang@xinhuafinance.com
