Chinese Investment Intentions Weakened in Q2

BEIJING, July 5 -- Chinese investors turned cautious in the second quarter of 2010 amid equity market fluctuations and government tightening measures designed to cool property market speculation, an index indicated Friday.
The ICBC Investment & Wealth Management Index fell 7 points to 109 in the second quarter, with urban residents' investment intentions swinging to "neutral" from "relatively strong."

The index is compiled by the Industrial and Commercial Bank of China (ICBC), China's largest lender, and consultancy firm The Gallup Organization.

The index's "Macro Environment Confidence" sub-index lost ground for the second straight quarter with a drop to 112, indicating city residents' increased concern about the overall economy and diminished confidence in investing compared with the first quarter.

The "Living Expectations" sub-index fell 6 points to 121 in the April-June period.

The "Investment Wish" sub-index slipped to 97 from 102 in the first quarter, implying that urban residents are putting less time and money into investing.

China's benchmark stock index, the Shanghai Composite Index, plunged 26.8 percent in the first half of the year while the Shenzhen Component index slumped 31.48 percent.

Only 8.2 percent of Chinese investors profited from equity markets in the first half the year, according to a Sina.com online poll conducted Thursday.