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A survey by Mastercard International (MI) has shown that the consumer confidence index on China's mainland has rebounded from 68.0 in June 2003 to the current 83.7, 12.7 points higher than the average level of the past several years.

"It indicates that Chinese mainland consumers' market confidence has recovered from the haze brought by SARS," said Feng Weiquan, MI's deputy president.

The regular survey, conducted twice a year in June and December,and covering 13 countries in the Asia-Pacific region, appraises consumers' views of the economic environment in the next six months.

The survey analyzed consumers' views in five aspects, includingemployment prospects, national economy, fixed income, stock marketand living standards, Feng said.

According to the survey, among residents in Beijing, Shanghai and Guangzhou, Shanghai residents are the most optimistic about the economic environment as the consumer confidence index has risen from 72.0 to 86.0, the third highest point in recent years, while the figure of Beijing has reached 84.5 from 69.9 six months ago, and that of Guangzhou has rebounded from 62.1 to 80.1.

Such an optimistic mood will benefit the whole economic environment in the Asia-Pacific region, said Feng.

The rebound of consumer confidence reflects the forceful impetus of China's economic development, said Wang Yuehun, chief economic consultant of MI in Asia-Pacific region.

According to Wang, as the annual increase rate of China's grossnational product (GNP) has reached 8.5 per cent despite the SARS epidemic, the annual increase rate of 2004 is estimated to be between 9 to 10 per cent.

The broad area of Chinese villages and hinterlands will become the hotspot of investment in 2004 and Chinese economic developmentwill see the rapid growth of its imports with the extension of thedomestic market, said Wang.

As the average growth rate of imports of consumer goods has reached 33 per cent, China has become the driving force of the economic development in the Asia-Pacific region, Wang said.

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