Uptick in Investor Sentiment

Jan 22-2019   

Chinese stock investors were slightly more upbeat in December 2018, but the overall market confidence was yet to recover, according to the latest reading of China Investor Sentiment Index (CISI) jointly developed by NSD and BAIFENDIAN, a big data and AI solutions company. The December CISI notched 41.4, slightly higher than that of the previous month, but still lower than the January one at 43.2, the peak figure of 2018. The uptick in December was assigned to improvement of investor sentiment concerning Shanghai Stock Exchange 50 Index and blue-chip stocks. CISI runs from 0 to 100, with the former being the most bearish and the latter the most bullish. The mid point, 50, indicates neutral mood. The readings in 2018 showed that the investors were more on the pessimistic side. The methodology involves collecting online data and deploys deep learning to measure the sentiment of Chinese retail investors. It incorporates past market info and reflects retail investors’ willingness to invest and their expectations for market trends.