(Yicai Global) Jan. 13 -- Investor sentiment in Shanghai remained unchanged and firmly optimistic in the fourth quarter amid China's economic recovery and inclusive policies to support smaller businesses, a new report showed.

The Shanghai investor confidence index stood at 120.61 for the three months ended Dec. 31, the same as in the third quarter, but 6.4 points lower than a year earlier, according to the report published by the Shanghai University of Finance and Economics today. A reading above 100 signifies optimism.

The report is based on a survey sent to entrepreneurs as well as institutional and individual investors in the eastern Chinese city. It includes sub-indexes that showed that among respondents, entrepreneurs had the most faith in the investment environment in the quarter.

The entrepreneurs’ confidence index was 123.83, up 1.6 point from the previous quarter and almost 5.4 points lower than a year ago, indicating satisfaction with operations and future prospects. All four sub-indexes tracking corporate development, sales, profits, and expectations jumped.

The government's inclusive policies for micro, small and mid-sized firms have recently eased firms' financing difficulties and lowered their borrowing costs, said Xu Guaoxiang, director of the SUFE’s center for applied statistical research. And cost pressures on manufacturers have been eased by a big drop in commodity prices since October that guaranteed profit margins, he added.

Other sub-indexes were less impressive. The institutional investor confidence index tallied 122.21, a decline of nearly 5.4 points on the third quarter and 7.2 points on a year earlier. The individual investor confidence index was unchanged at 103.88, but down almost 10.6 points from the same period of 2020.

The investment climate confidence index climbed 4.3 points to 130.32, indicating that investors remained optimistic about the investment environment. It was down 2 points from a year ago. 

Editor: Emmi Laine