Instos outpace retail investors on China sentiment

Retail investors are feeling less optimistic on the outlook for China than their institutional peers with fewer expecting the stock price of Chinese A-shares to rise in the next year.

According to the Cheung Kong Investor Sentiment Survey which surveyed 2,500 people, some 61% of retail investors expected A-shares would rise which was down 8.1% from the previous period in April 2020.

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However, for institutional investors, the number rose by 18.3% from the previous period to 79.9% expecting A-shares to rise.

This was also the case for Hong Kong-listed shares where retail investors were less optimistic than institutional ones, although both sides were positive overall.

Survey respondents were optimistic about the Chinese economy as 61% believed future GDP growth could exceed 5% on the back of successful vaccinations and the recovery seen in the economy in the second half of 2020.

However, they were pessimistic about the impact of the Biden administration in the US and over half of respondents said they believed US-China relations would have long-term negative impact for the country.

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