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Urban residents have little confidence in stock market
(Xinhua)
Updated: 2005-06-07 22:00

Chinese urban residents prefer to buy state treasury bonds instead of shares in the country's two stock exchanges, according to a survey published Tuesday by the central bank, People's Bank of China.

The survey, which questioned urban depositors nationwide duringthe second quarter of this year, showed that people have little confidence in the nation's stock market, which has remained bearish for the past eight years.

The survey also revealed that 60.2 percent of the respondents said they believed that the current bank interest rate is low, an increase of 4.7 percent compared with the first quarter.

The number of people who held that saving is the best investmentchoice dropped 4 percentage points to 36.6 percent from the first quarter. While 17.3 percent of the respondents answered that they believe purchasing state treasury bonds is a better choice, up 3.9 percent.

Meanwhile, the urban citizens are not satisfied with the currentcommodity prices, according to the survey, with 32.5 percent of them forecasting that the consumer price index will rise to 24.6, which is up 5.2 percentage points from the first quarter.

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