HK Investor Confidence Index | J.P. Morgan Asset Management

J.P. Morgan HK Investor Confidence Index - Introduction

Mar 2012

The latest findings show that investor confidence has picked up significantly from the December 2011 level of 105 to 118 in March 2012, driven by investors’ increasingly optimistic outlook towards both the local and global economic environments.MORE

HK Investor Confidence Index Report

J.P. Morgan HK Investor Confidence Index - Methodology

Research Background

Objectives

This exercise has been designed to gain an understanding of:

Investor confidence (for the calculation of the Investor Confidence index)
- how Hong Kong investors' attitudes to investing change over time
- how they foresee the performance of global and local markets in the months ahead
Investor behavior
- how they see themselves as an investor
- how they make their investment decisions
- what is their risk tolerance and how this changes with market performance

Methodology

J.P. Morgan Asset Management developed Hong Kong's first J.P. Morgan Confidence Index which reflects the investors' sentiment towards the Hong Kong investment market in the next six months. A survey was conducted by Cimigo on behalf of J.P. Morgan Asset Management to gain an understanding of investor's confidence and behavior.

Sample Size	500

Target Respondents	Males and females aged 30-60, Have minimum HK$100,000 liquid assets and at least 5 years of continuous investment experience, and have personally invested in stocks, derivatives, mutual funds/unit trusts or other retail investment products in the past 12 months, At least 50% of the respondents are current fund investors

Interview Method	Face-to-face interviews at central locations

Index Calculation

The J.P. Morgan Confidence Index score is derived from asking Survey respondents 6 questions to clarify the confidence of investors.

(Q1) The HK stock market performance
(Q2) HK economy environment
(Q3) HK market environment and atmosphere
(Q4) Global economic environment
(Q5) The possibility of personal asset appreciation
(Q6) The possibility of investment amount increasing

These 6 questions form the sub-indices of the J.P. Morgan Confidence Index. The index and all sub-indices have a range between 0 and 200. A number greater than 100 represents a positive outlook and vice versa.

J.P. Morgan HK Investor Confidence Index - Trend

Index	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12
Hang Seng Index (Q1)	136	140	139	138	140	139	134	132	123	117	131
HK economic environment (Q2)	123	126	130	124	124	125	123	120	107	106	117
HK investment environment & atmosphere (Q3)	129	129	132	123	123	125	121	117	112	104	119
Global economic environment (Q4)	114	121	120	112	117	117	107	103	94	89	110
Value of investment portfolio (Q5)	118	127	132	124	125	131	122	121	113	109	122
Amount of investment (Q6)	115	126	117	113	115	116	113	114	111	105	111
J.P. Morgan HK Investor Confidence Index	125	129	128	122	124	126	120	118	110	105	118

Index	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12
Hang Seng Index (Q1)	136	140	139	138	140	139	134	132	123	117	131
HK economic environment (Q2)	123	126	130	124	124	125	123	120	107	106	117
HK investment environment & atmosphere (Q3)	129	129	132	123	123	125	121	117	112	104	119
Global economic environment (Q4)	114	121	120	112	117	117	107	103	94	89	110
Value of investment portfolio (Q5)	118	127	132	124	125	131	122	121	113	109	122
Amount of investment (Q6)	115	126	117	113	115	116	113	114	111	105	111
J.P. Morgan HK Investor Confidence Index	125	129	128	122	124	126	120	118	110	105	118