Survey reveals information about Chinese investing habits

Equity investment has taken a bigger share in Chinese asset allocation portfolios thanks to their increasing disposable income and changing investment concepts, according to a report released by investment advisory service provider Beijing Koudai Caifu Information Technology Ltd.

Chinese people's investment in equity products have risen almost 63 percent year-on-year in 2021, the biggest surge among all surveyed investment categories. Nearly 30 percent of polled individual investors are willing to allocate half their total income to equity assets such as stocks or stock-focused funds.

According to the Asset Management Association of China, the total value of equity-focused fund products came at 8.63 trillion yuan ($1.36 trillion) by the end of 2021, 3.95 times the number in early 2019.

The macroeconomic environment is the most influential factor in people's investment decisions, winning 67 percent in the survey. Individual's gain or loss and market sentiment are the other two major reasons affecting people's decisions.

More than 30 percent of mutual fund investors will make no move when faced with losses. Only 20 percent of them will stop the loss when they have lost 10 to 20 percent of the principal.

More than 25 percent of interviewees are willing to invest 70 percent of their income in wealth management products in general, according to the survey.

Southwest China's Guizhou province saw the biggest expansion of people engaging in various wealth management activities last year, with the annual growth rate of this population coming in at 38.3 percent.

Surprisingly, nearly 96 percent of individual investors in Northwest China's Gansu province reported gains last year, dislodging investors in other Chinese places. Their more relaxed investment attitude and smaller risk appetite may have resulted in their higher profitability, according to the survey.