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Macro & Sentiment Check
In May, the household risk appetite continued to rebound toward neutral, but the recovery relied more on capital markets (due to the recent bull run) than on the broader economy.
1. China Resident Risk Appetite Index (CRRAI)
Following April’s pullback to around -0.19, the May 2026 CRRAI composite reading rebounded to -0.06 — a +0.14 improvement on the month and a +0.13 increase over three observations.
At the 49.1 historical percentile, the risk appetite index is approaching the neutral territory, though May has not yet confirmed a clean, broad-based break into a risk-on regime. The improvement was very much driven by the capital market due to the recent bull run.
2. Institutional vs. Retail Sentiment
Retail investors in China remain steady in May and June without irrational optimism.
Big banks and international funds' sentiment is cooling after a sharp run in May.
