China Consumer Confidence Holds Up in May Despite of the Earthquake Disaster

SHANGHAI, May 27 /Xinhua-PRNewswire/ -- Xinhua Finance eziData China
Consumer Confidence Index (CCCI) was updated today, with the survey results
showing that Chinese consumer confidence in May remained unchanged from that
in April at 94.9, despite of the serious earthquake disaster which happened in
Wenchuan, Sichuan province earlier in the month. For a graphical illustration
of the Xinhua Finance eziData China Consumer Confidence Index, please visit
http://www.xinhuafinance.com/en/charts/indicator/ccci/ccci0805_en.jpg .
(Logo: http://www.xprn.com/xprn/sa/200611140926.gif )
A comparison of the data collected before and after the earthquake on May
12 indicates that, although consumer confidence showed a considerable drop on
the day of the earthquake, it picked up quickly starting the very next day,
resulting in an only 1-point-or-so drop in the post-earthquake data in both
the overall consumer confidence as well as confidence on the current
conditions and future expectations compared to that before the earthquake.
This is an evidence of strong confidence on the part of the consumers in the
Chinese economy as well as in the Chinese government.
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 1,539 telephone interviews from May 1
to 18, 2008. 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 rebound of the stock market and the easing of the general price rises
in May have helped improve consumer sentiment on personal finances in terms of
both current conditions and future expectations, with no immediate impacts
from the earthquake. The impacts of the earthquake were largely reflected in
consumers' future expectations on business conditions: after the earthquake,
consumer sentiment on the outlooks on one-year and five-year business
conditions fell by 3 to 6 points. eziData will pay close attention to the
changes in the next few months to determine the future trend.
The earthquake has had certain impact on consumers' allocation of their
income. A comparison between the data before and after the earthquake showed a
drop in the latter in terms of daily expenses as well as durable purchases,
yet a rise in terms of savings and investments. Apparently, the disaster has
stimulated consumers to reduce expenses and save more for emergency use, or to
invest more to prepare for the long term. It is still too early to tell
whether this was a temporary phenomenon or a lasting one, and the eziData
analysts will keep tracking the data in the next few months.
The earthquake has also had impacts on consumers' expectations on the
price rises. Upon the news of the earthquake, sentiment on future price rises
kept rising, showing concerns on the part of the consumers about higher
general prices under the earthquake impacts. eziData will keep tracking the
trend in the next few months.
In terms of major cities, consumer sentiment in May fell sharply in
Beijing and slightly in Shanghai, but rebounded in Guangzhou after a plunge in
the city in April.
Sentiment among Beijing consumers went further down by a full 5.9 points
in May to 89.3, becoming the lowest reading in consumer confidence among the
three major cities, though it had been the highest reading the month before.
And among the five components of the overall confidence index, all three
constituting future expectations plunged, with the largest drop occurring in
the five-year business outlook.
Sentiment among Shanghai consumers fell a slight 0.6 point to 93.5 in May
after a 2.9-point rebound in April. Current conditions fell for the third
month in a row, yet future expectations remained basically unchanged from the
previous month. And among the five components of the confidence index, current
personal finances as well as outlook on one-year personal finances fell, yet
outlook on future business conditions kept rising, with the mid-long term
business outlook rising by a full cumulative 15 points in the last two months.
Consumer sentiment in Guangzhou recouped 3.9 points to 92.2 in May
entirely due to a strong rise in future expectations, as current conditions
remained basically unchanged. And among the five components of the confidence
index, a strong rebound in one-year personal finances was detected, while
confidence in future business conditions improved only modestly.
Consumer Voices:
*This is quite a year for China, with all the snow storms and earthquakes, and
the rising food prices and falling stock prices. However, we are seeing a
great government, and I am sure that with this government China will keep
developing, and all this will go by.
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 12 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

Xinhua Finance
China:
Ms Joy Tsang
Tel: +86-21-6113-5999 or +86-136-2179-1577
Email: joy.tsang@xinhuafinance.com

Mr. Scott Zhang
Tel: +86-21-6113-5996
Email: scott.zhang@xinhuafinance.com

SOURCE Xinhua Finance Limited

Xinhua Finance China: Ms. Joy Tsang, +86-21-6113-5999 or +86- 136-2179-1577,
or joy.tsang@xinhuafinance.com, or Mr. Scott Zhang, +86-21- 6113-5996, or
scott.zhang@xinhuafinance.com