Recent numbers from the Yale-CCER Stock Market Investor Confidence Index (SMICI) show that 80% of investors believe prices of A-shares are relatively low and are right for investment. Investors also see the recent reform of the Split-IPO system as the biggest influence on market changes, seeing Split-IPO reform as decisive in future market developments. At the market's present state, a reasonable level for the Shanghai Exchange Composite Stock Index should be around 1240 points.
The recent Yale-CCER Stock Market Investor Confidence Index (SMICI), produced by Yale University's International Center for Finance and the CCER, showed investor confidence at 78 points, up 15% from July, meaning that nearly 80% of the 300 investors interviewed believed A-shares show promise. Institutional and individual investors were at 77.54 and 78.81 respectively, with the relative numbers in July having been 70.54 and 66.67. This shows a reservedness on the part of institutions, but drastic change in the eagerness of individual investors.
Surveys also revealed that 60% of investors believed that market prices did not reflect economic trends or the operating status of companies, but were affected by speculation and overreaction to market information. Under the current state of China's economy and listed companies, the index value given by institutional investors for the Shanghai Exchange was 1260, higher than yesterday's 1212, but there were differing opinions. The forecasted median value was 1200 and was the most frequent value. This shows that institutional investors' estimates are concentrated around 1200, but there is disagreement in estimates of future changes in the index.
