Authoritative survey suggests that the Chinese people are reacting to the adjustment in Renminbi interest with a sober mind. The People's Bank of China (PBOC) announced a 0.27-percentage point raise of the interest rates for both lending and deposit, which took effect on October 28, 2004.

It was the first raise since the cut in May 1996 and therefore is significant. A survey conducted by Chinasurvey.com.cn among 2, 000 people in ten cities including Beijing, Shanghai and Guangzhou shows that 72 percent people are concerned about the move.

Public reactions to the interest rate hike are regionally specific. City dwellers in the north remain calm while those in the south, with stronger financial awareness, response with some actions in their deposits and investments.

Opinions also differ when asked how their lives will be affected. But generally people think there will be a big impact on the industries and commerce, not on their livings.

About the timing of the interest rate raise, 57 percent of the interviewed, reckoning it a bit late, think such measures should have long been taken along with the constantly growing prices.

Despite some jolt in the society, most people can remain sober. Undoubtedly, the adjustment is to some extent beneficial to residents' savings, while in the mean time to affect the stock market, bond market and financing products. Much heavier pressure is imposed on housing and car buyers on the installment plan. The survey indicates there will be more people repaying their loans ahead of schedule.

Data show the move will anyhow touch residents' investment plan. 53 percent people say they will be more rational and prudent in investing, especially in buying houses on the installment plan.

Furthermore, people will doublethink in investing and financing and will likely leave most money in the bank. As for stocks and funds, they will not act before serious consideration.

In terms of the impact, 21 percent people think it will be heavy in the stock market and 36 percent say their confidence in the stock market is diminishing.

By People's Daily Online