Shanghai's consumer confidence up in Q1 of 2025

Shanghai consumer confidence index went up 10.5 points from a quarter earlier to 111.4 points in the first three months of this year, according to a survey released on Tuesday.

The first quarter consumer confidence index reading was 6.5 points higher than that in the same period last year, according to the survey, jointly conducted by the Research Center for Applied Statistics at Shanghai University of Finance and Economics (SUFE), and Shanghai Social Survey and Research Center SUFE Branch.

Among them, the consumer evaluation index reached 111.3 points, up 9.9 points from a quarter earlier and 7.7 points higher on a yearly basis. The consumer expectations index jumped 11.2 points to 111.4 points, up 5.3 points year-on-year.

The double-digit quarter-on-quarter growth in the above three gauges, all of which are higher than the same period in 2024, have indicated a significant improvement in terms of consumer satisfaction with the overall economy, employment and future expectations, said the survey.

According to the joint analysis provided by Xu Guoxiang, professor of the SUFE's Research Center for Applied Statistics, Wu Chunjie, professor from SUFE's School of Statistics and Data Science, and Cui Chang, associate professor from the same School as Wu, the noticeable rebound sits on the positive signals sent during this year's two sessions, consolidating consumers' confidence in China's stable economic growth.

Meanwhile, more signs of economic turnaround in Shanghai can be seen from the city's stable economic growth and employment in the first quarter. Consumers have thus raised their expectations on Shanghai's GDP growth. Their sentiment also picked up thanks to the municipal government's measures to generate more job opportunities and boost consumption. People's willingness to spend rose in the first quarter, which is conducive to the city's continued economic recovery, said the three experts.

In addition, the Shanghai investor confidence index continued rose by 6.47 points to 113.04 points in the first three months, up 3.09 points year-on-year. Among them, the Shanghai individual investor confidence index came at 106.6 points, which was 5.18 points higher than the previous quarter and 13.95 points higher on a yearly basis.

In an analysis jointly compiled by Xu of the Research Center for Applied Statistics and Chang Ning, professor from SUFE's School of Statistics and Data Science, the two experts explained that the upward momentum of the A-share market in the first quarter, which was pillared by continued introduction of economic stimulus packages and China's economic recovery, have helped to buoy retail investors' confidence.

On the other hand, the overall environment of the A-share market has been improving, thanks to the positive and stable government policies, continued advancement in capital market reform, the proliferation of registration-based initial public offering mechanism and the completion of the delisting mechanism.

On top of that, the A-share market has seen its valuation entered into a reasonable range. The investment value of certain industries has risen. The continued foreign capital inflow has helped to secure ample liquidity and boost market activities. All these have contributed to stronger confidence of individual investors, they said.