Chinese household wealth rises as economy stabilizes

A Chinese woman shows credit cards and other bank cards in Qionghai city, South China's Hainan province, April 14 2012. [Photo/IC]

BEIJING - The Climate Index of China's Wealth released by Bank of Communications (BOCOM) rebounded to 126 in March from 119 in January as the economy showed signs of improvement, a BOCOM report said Thursday.

The index, published bimonthly, hit a five-year low of 111 in September 2015 before rising to 122 in November and then falling again.

The report, which solicited opinions from well-off Chinese households on economy, income and investment, attributed the latest uptick to positive effect of government pro-growth policies.

China's economy has shown tentative signs of stabilizing, the report said, pointing to recovering demand in the property sector, robust consumption and stronger manufacturing activity.

A reading above 100 indicates wealth improvement, while that below 100 represents deterioration.

Three main sub-indices all rose markedly, with that for investment willingness up 8 percentage points to 119. Economic climate and income growth indices both increased 7 percentage points to 115 and 139 respectively.

The report surveyed nearly 1,850 families with annual after-tax incomes above 100,000 yuan ($15,750) in five metropolises, including Beijing and Shanghai, and 80,000 yuan in 21 other major cities.

China's economy grew by the slowest pace in 25 years in 2015, but some indicators have picked up since early this year. Property investment accelerated in the first two months, while an official index of manufacturing activity rose in March to its highest level since last August.

The country has taken a slew of fiscal and monetary policies to support growth, cutting interest rates and taxes on companies.

The surveyed families have become more optimistic about the overall economic picture, the BOCOM report said.

Warming home sales and a recovering stock market improved the financial conditions of well-off families and raised their intention on investment in stocks, funds and real estate, according to the report.