Chinese households more optimistic about finances: report

BEIJING - Chinese households became more optimistic about their economic outlook in May, according to the latest Climate Index of China's Wealth released by the Bank of Communications (BOCOM).

The index, published bimonthly, increased to 133 in May from 126 in March. It is based on a survey that solicited opinions from well-off Chinese households on the economy, income and investment.

Government pro-growth policies have contributed to greater optimism about household income and employment despite downward pressure on the country's economy, the BOCOM said.

Surveyed families feel the domestic economic environment is steadily improving, according to the bank's report.

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

Three main sub-indices all rose markedly, with that for income growth up to 147 from 139 in March. The sub-index for economic climate rose to 120 from 115 while that for investment willingness climbed to 124 from 119.

The report surveyed nearly 1,850 families with annual after-tax incomes above 100,000 yuan (around $15,750) in five metropolises, including Beijing and Shanghai, and 80,000 yuan in 21 other major cities.

China's economy grew by the slowest pace in 25 years in 2015, but some indicators have picked up since early this year, including property investment and manufacturing activity.

The country has taken a slew of fiscal and monetary policies to support growth, cutting interest rates and taxes on companies.