Wealth climate index falls in May: report

BEIJING - The Climate Index of China's Wealth released by Bank of Communications (BOCOM) fell in May due to greater employment pressure and lower household investment returns, a BOCOM report showed Wednesday.

The bimonthly index dropped to 135 last month from 138 in March, according to the report.

Readings above 100 indicate growth in wealth, while readings below 100 represent deterioration.

BOCOM attributed the decline to a less upbeat outlook on the country's employment and the faltering stock and real estate markets that pared household investment yields.

The bank surveyed well-off Chinese households on three indices: the economy, income and investment.

All three sub-indices slipped, with the one for the economy falling to 133 from 136 in March, as households felt greater pressure on employment.

An official index for manufacturing employment has stayed below the expansion-contraction threshold for two months in a row, showing weakening demand for workers.

The sub-index for income growth decreased to 147 from 151, with more families intending to reduce expenses due to shrinking returns on stock and fund investment.

Meanwhile, the sub-index for investment willingness went down to 122 from 125, as households became less confident in stock and real estate investment.

The report surveyed 1,840 families with annual after-tax incomes above 120,000 yuan ($17,660) in four major metropolises, including Beijing and Shanghai, as well as those with incomes over 100,000 yuan in the southwestern city of Chengdu and those with incomes over 80,000 yuan in another 21 major cities.