China's wealthy families optimistic about the Chinese economy

China's wealthy families are optimistic about the Chinese economy in the future amid steady economic growth, Bank of Communications said in report today.

The bimonthly Climate Index of China's Wealth was 140 points in March, flat as two months before, according to BoCom.

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

Among three main sub-indices, the economic climate index added 3 percentage points to 140, while the index for income growth shed slightly by 1 percentage point to 154. The investment intention index remained the same as in January.

The growth of the economic climate index showed that well-off families are optimistic about the future of the Chinese economy, with employment situation and investment climate both showing positive trends, BoCom said.

China's economy developed steadily in the first two months of this year as value-added industrial output grew by 7.2 percent year on year, 1.0 percentage point faster than December 2017. Meanwhile, investments in fixed assets rose 7.9 percent yearly at a 0.7-percentage-point faster pace.

The investment intention index was unchanged, with intention to invest in current assets and real estate offsetting each other.

"With the US Federal Reserve's interest rate hike and the trade friction between China and the US, major benchmarks for the A-share market fell. This brought a negative influence on market sentiment and consumers' preference for risks," the report said.

Meanwhile, government's policies beneficial for the real estate market encouraged well-off families to invest in real estate, counteracting the drop in investment intention for current assets.

The report surveyed 1,843 well-off families with an annual after-tax income above 120,000 yuan in Beijing, Shanghai, Guangzhou and Shenzhen, as well as those with income over 100,000 yuan in Chengdu and others with income of over 80,000 yuan in 21 other major cities.