Chief Economist Confidence Index Reaches 50.86 In May

The Chief Economist Confidence Index reached 50.52, down from April’s 50.86 but remaining above 50, indicating economists remain positive. The index, compiled by the First Financial Research Institute, showed economists expect April's CPI to reach 0.18% y/y, PPI at -2.29% y/y, consumer goods up 4.13% y/y, fixed-assets investment of 4.68% y/y, and real-estate investment at -9.6% y/y. Economists did not anticipate the one- and five-year LPR rates to lower in May, and the likelihood of a RRR cut was low. However Lian Ping, president at Guangkai Chief Industrial Research Institute, said authorities could still cut rates in Q2, with the MLF potentially reduced by 10-20bp. (Source: Yicai)