A survey by the People's Bank of China, the central bank, shows urban households are more likely to invest in stocks and funds in the fourth quarter as the country's stock markets continued to set records after five years of bearish performance.

 

The survey shows a record high of 18.5 percent of urban households considered "investing in stocks and funds" given current prices and interest rates, up 2.7 percentage points on the previous quarter.

 

The survey also reveals that the structure of their financial assets was changing with more urban dwellers choosing stocks and funds instead of savings as their major financial assets.

 

"Urban dwellers are increasingly aware of wealth management and show more interest in financial products such as funds," the survey finds.

 

The central bank said savings for home purchase, education and pensions had fallen in the 50 cities surveyed.

 

Analysts say China's measures to fuel domestic demand are taking effect.

 

The survey shows more urban dwellers saw their incomes grow in the fourth quarter and are optimistic about income growth in the next quarter.

 

(Xinhua News Agency December 21, 2006)