Chinese Entrepreneur Confidence Index

11 Apr

For over a decade China has recorded an entrepreneur confidence index. In the first quarter of 2010 the index came in at 135.5.  Not only is this a large increase from the previous quarter’s reading of 127.7, but is close to the index’s peak of 143.1 in June 2007.

The index has remained high for a number of readings now.  Once sentiment indicators reach extreme levels for a sustained period they are often good contrary indicators. This index has certainly been a good indicator in the past.  Thus, this index does suggest that a significant top in China could be reached within the coming weeks/months (rather than quarters).

The chart below illustrates the history of the index since it opened in 1999.

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