Central bank surveys reflect weak confidence in Chinese economy

Surveys conducted by China's central bank have indicated that bankers, entrepreneurs and depositors are worried about the economy and have less confidence, the Shanghai Securities News reported Saturday. The People's Bank of China (PBOC), the country's central bank, on Friday released reports for surveys conducted to find out public opinions regarding the economy. According to the reports, 34.1 percent of surveyed bankers and 36.4 percent of surveyed entrepreneurs believe the macroeconomy has slowed. The index for loan demand was 72.5 percent, declining 4.9 percentage points from the previous quarter, while the index for the manufacturing sector posted the largest drop of 5.5 percentage points. The loan demand of small and mid-sized enterprises decreased by more than that of large companies in the second quarter, the reports said. Just 30 percent of all surveyed companies said they are optimistic about capital turnover and fund withdrawals. Affected by increasing worries over the capital market, 46.2 percent of respondents said they were inclined to make greater deposits, while 35.7 percent stuck to investment, 1.9 percentage points lower than in the previous quarter. The reports said that 59.1 percent of respondents believe commodities prices are too high, while 66.7 percent said housing prices are not acceptable.