(Yicai Global) July 19 -- Some 73 percent of local investors polled by J.P. Morgan Asset Management (JP Morgan AM) (摩根资产管理) will not change their investment strategy in the next six months, Xinhua News Agency reported, citing an investor confidence index report published by the asset management arm of JPMorgan Chase & Co. in Hong Kong yesterday.
Investors are more interested in dividend-yielding investment products than in the second quarter of this year.
The index is compiled based on investors' confidence in six areas, including the Hang Seng index, Hong Kong's economic conditions, the city's investment climate, global economic environment, the prospects of an appreciation in personal assets and willingness to ramp up investments. The index and its sub-indexes can be from 0 to 200. A reading over 100 betokens optimism.
The JP Morgan investor confidence index stood at 112 this June, on par with six months ago, the report shows.
The increase in the Hang Seng index in the second quarter has helped boost investors' confidence, and more now think Hong Kong is in a bull market, with the city seen as among markets with the biggest growth potential this year, said Luo Shulan, vice president of JP Morgan AM's retail and distribution unit.
Meanwhile, investors are fully aware of the potential negative impacts in the market, and some 70 percent of respondents believe possible US rate hikes and balance sheet reductions will weigh on the global market, Luo said. In sum, over 70 percent are taking a 'wait and see' attitude toward market conditions in the next six months.
For stock markets, JP Morgan AM favors the eurozone and emerging markets -- especially Asia -- as exports gain momentum in the region amid expectations of steady growth of China's economy, said Zhou Huantong, the firm's global market strategist. By sector, JP Morgan AM remains upbeat about cyclical sectors such as consumer goods, industry, technology and finance.