China Consumer Confidence Hits New Low in September as Fast Deteriorating Subprime...

China Consumer Confidence Hits New Low in September as Fast Deteriorating
Subprime Mortgage Crisis Lowers Future Expectations

SHANGHAI, Sept. 23 /Xinhua-PRNewswire/ -- Xinhua Finance eziData China
Consumer Confidence Index (CCCI) was updated today, with the survey results
showing that China Consumer Confidence Index declined 1.9 points to 91 in
September after a slight rebound in August, led by a fall in consumer
sentiment on future expectations. This shows high concerns on the part of the
Chinese consumers about the future of the business conditions in China at a
time when the subprime mortgage crisis in the US is evolving into a global
financial crisis.
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Consumer sentiment on current conditions inched up 0.1 point to 90.2,
supported by stable general prices which were manifested in a relatively
stable consumer satisfaction with current prices (only slightly lower than the
month before). However, consumer sentiment on future expectations plunged 3
points to 91.4, creating a new low as well as the largest month-on-month fall
in survey history since April 2007. The sharp fall in consumers' future
expectations was mainly due to the fast deterioration of the subprime mortgage
crisis --- such as the take-over of Freddie Mac and Fannie Mae by the US
government, as well as the bankruptcy of Lehman Brothers -- which made
consumers in China worry about the future of China's business conditions.
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 1,520 telephone interviews from
September 1 to 15, 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 September survey was completed on September 15. After that, the US
government released a program of US$ 700 billion to save the market, and the
central government of China also issued a series of policies in the same
effort. According to eziData analysts, this is very likely to cause a strong
rebound in consumer confidence in October. However, the mid-long term trend in
consumer confidence will be subject to the future trend in the subprime
mortgage crisis as well as that in the stock market and real estate market in
China.
Consumer Voices:
"I really shouldn't buy a house and a car at the same time. The mortgage
could kill you. And the prices are rising so fast that I could hardly meet my
expenses with my income."
"The appreciation of RMB has undermined export with raised costs. Company
performance is getting poor. And now the US is coming with the subprime
mortgage crisis. I guess the economic growth will slow down."
"The house price rose so much last year, and only lowered a little this
year. Who knows if it will go down again? I'd better wait and see."
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 more information, please contact:

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

China: Ms Joy Tsang, +8621-6113-5999, or cell, +86-136-2179-1577, or
joy.tsang@xinhuafinance.com; Or Mr. Scott Zhang, +86-21-6113-5996, or
scott.zhang@xinhuafinance.com, both of Xinhua Finance