(Yicai) May 9 -- Chief economists polled by Yicai remain optimistic about China’s economic prospects this month, despite a modest decline in confidence, as the recovery gains momentum amid ongoing policy support.

The Yicai Chief Economists Confidence Index edged down to 50.52 in May from 50.86 in April, ending two months of gains but remaining above the key 50 level, according to the findings of a survey of leading China-based economists published yesterday.

To promote coordinated regional development, differential and specialized regional planning needs to be formulated based on the unified national market, taking into account variations in different regions, along with support measures such as policies on land, industry, talent, and environmental protection, according to the economists.

The consumer price index likely rose 0.2 percent last month from a year earlier, faster than March’s 0.1 percent increase, the economists predicted. They expect the producer price index to have fallen 2.3 percent, slower than the previous month’s 2.8 percent decline.

Investment, consumption, production, and foreign trade were all probably higher last month than in March, according to the economists. Their average growth forecast for fixed asset investment, retail sales of consumer goods, and industrial added value for April were 4.7 percent, 4.1 percent, and 5.3 percent, respectively. The trade surplus likely reached USD75 billion.

The economists expect new yuan-denominated loans and social financing to have fallen to CNY951.9 billion (USD131.8 billion) and CNY1.21 trillion (USD167.5 billion), respectively, from March owing to seasonal factors.

But the average growth forecast for M2, a broad measure of money supply that covers cash in circulation and all deposits, was more than 8.3 percent, basically the same as March’s official figure. They also anticipate the benchmark deposit interest rate and the one-year and five-year loan prime rates will remain unchanged this month.

The Chinese yuan stood at 7.1063 against the US dollar on April 30. The economists see the yuan at 7.08 at the end of this month and lowered their expectations for the end of the year to 7.06.

Editor: Futura Costaglione