Today ICBC released the "ICBC Investment & Wealth Management Index" for the third quarter 2010, moving up 1 point from last period's 109 to 110. The increase ends the negative spin since the first quarter this year. The intention of urban residents to invest and accumulate wealth remains at "medium", but there are signs of change in continuing the investment momentum.
From the three sub-indexes of "ICBC Investment & Wealth Management Index", "Macro Environment Confidence Index" of 114 points changes the downward trajectory in the last two quarters, a mark of easing concern of city folks on the economy and their sizable recovery in confidence to invest again. "Living Expectation Index" stays basically at the same 119 points as last period's. "Investment Wish Index" curbs the slide and rises 2 points to 99, implying that the city folks start to put more time and money to invest, and invest more.
Study on this quarter's "ICBC Investment & Wealth Management Index" reveals that urban investors are holding more investment products during this period, up from 65% in 2010 second quarter to 69%. Urban investors hold more investment products on average in terms of type, from last quarter's 2.2 to this quarter's 2.
4. In terms of product invested, strong preferences are on holding more stocks and funds. Their investments in dividend-type insurance show slight increase but investments in real estate, gold and banking wealth management products basically remain on par with that in the second quarter. Meanwhile, in the coming six months, urban dwellers may buy more stock, fund, gold and banking wealth management products, but hold less intention to invest in real estate or dividend-type insurance.
"ICBC Investment & Wealth Management Index" is an index jointly compiled by ICBC and The Gallup Organization, a consultancy firm known throughout the world. The index measures the confidence of urban dwellers on the macro environment and investment desires with respect to living expectation. Areas of survey for compiling the index cover 16 cities of varying economic standards.
These sample cities are rotated in a certain ratio in each round of index. The index, the twelfth round this quarter starting from the first in the fourth quarter 2007, serves as an authoritative and respected reference in the field today. The release of the index is also one key element of "Walk A Million Mile - Investment and Wealth Management", a charity cause that ICBC sponsors to spread the knowledge among the public and help the customers make sensible judgment in their financial planning and build harmonious life.
ICBC will keep track to measure the investment preferences of the urban dwellers and announce the result in an index, an executive with ICBC said. This will serve as a good reference for the prosperity of wealth management market in the country.
