Recently, ICBC released the first issue of "ICBC Investor Sentiment Index" in 2009 (the sixth issue from the beginning). The index score released is 104, above the middle of the range between 0 and 200, becoming the first pick-up after the continuous decline starting from the first quarter of 2007, which demonstrates an increased willingness of China's urban residents to invest in the financial market.
Shown by the three sub-item indexes, the macro confidence index has slightly risen from 117 in the fifth issue to 120 in this issue, showing that the confidence of urban residents has increased both in macro economic development and investment opportunity. The life expectancy index has surged to 108 from 100 in the last issue, exceeding 107 in the fourth issue, revealing a significant growth in city residents' expectancy for future life.
The investment willingness index took a pick-up to 97 from 93, higher than 96 in the fourth issue, indicating that the urban residents are more willing to pay time and money in financial investment.
Industry experts analyzes that in the context of global financial crisis, as the Chinese government has adjusted its macro economic policies promptly, implemented an active fiscal policy, loosened its monetary policies, and adopted effective measures to enlarge the domestic demands, boost the economic growth and sustain a smooth and rapid development of the economy; nowadays, these policies have achieved initial effects and positive signs are sent out from the market, which plays a fundamental role in rebuilding the investors' confidence and exerts important influence upon the attitudes of urban residents for financial investment.
The "ICBC Investor Sentiment Index" makes an accurate reflection of this tendency among city residents.
ICBC's index research also reveals that the proportion of different types of financial products held by urban residents is rather stable, but the willingness to purchase participating insurance, real estate, stocks, funds and bank financial products in future is increasing. As to the proportion of different types of financial products held by urban residents, the ratios for stock, participating insurance, funds and real estate are 32%, 32%, 25% and 15%.
While for their willingness to purchase different financial products in future, the proportion of residents to buy participating insurance has risen from 8% in the fifth issue to 14%, that of residents willing to buy real estate from 6% to 12%, that of residents willing to buy stocks from 16% to 19%, that of residents willing to buy funds from 6% to 10%.
The proportion of residents willing to buy bank financial products has not displayed a significant change, but will increase in future. Among the potential customers, male residents between 20 and 30, and between 31 and 50 reveal a relatively strong demand.
ICBC's official responsible for this research says that the "ICBC Investor Sentiment Index" is launched by cooperation with the worldly renowned consultancy firm Gallup. The index research conducts a comprehensive survey of city residents' willingness for investment based on their confidence in macro economic environment and life expectancy, which covers sixteen cities representing areas at different economic development levels, and for each issue a fixed proportion of sample cities are changed.
Since the first issue of "ICBC Investor Sentiment Index" was released in the first quarter of 2007, ICBC has continued the research and result release -- the second issue in the fourth quarter of 2007, the third, fourth and fifth issues in the first quarter, the third quarter and the fourth quarter of 2008.
The indexes released this time are based on research results obtained in the first quarter of 2009. By releasing the index, ICBC hopes to help its clients to better understand financial management and to invest rationally; also to provide accurate and useful information for businesses relating to financial management.
The official also says that ICBC will continue to research upon the urban residents' investment willingness and release the "ICBC Investor Sentiment Index", providing useful information for institutions in the financial management market to make sound decisions.
