Shanghai consumer confidence rises in Q4

Measures to stimulate demand in Shanghai delivered the goods in the fourth quarter of 2023, a survey released on Tuesday showed.

The latest Consumer Sentiment Index in Shanghai, compiled by the Shanghai University of Finance and Economics each quarter, rose 0.3 points from the third quarter to 101.7 points, reflecting improved consumer sentiment as a reading above 100 signifies optimism while one below 100 indicates pessimism.

Consumers' expectations for purchases increased in the fourth quarter of last year, according to the component indexes. The desire to buy property index increased 16.2 points from a year earlier to 59.2, and the readiness to buy a car index increased 11.1 points to 88.

"It proves the effectiveness of new measures in Shanghai, such as adjusting the standard for 'ordinary housing' and optimizing the differentiated housing credit policy," said Xu Guoxiang, director of the university's Applied Statistics Research Center.

"Along with the continued support for the purchase of electric cars, they successfully filled the gap in consumer needs."

Shanghai changed its housing regulations on December 15 to address the necessity for better living spaces. The concept of "ordinary housing" no longer has a price restriction, which helps to bring down the costs for home buyers through fewer taxes and smaller down payments.

However, Shanghai's investor confidence fell 5.1 points from a quarter earlier to 98.15 in the final three months of 2023, suggesting that investors were still pessimistic about the growth turnaround.

Experts have advised the city to step up efforts to improve social security and the business environment to boost confidence in the prospects of employment, income, and consumption.