An index tracking investor confidence rose month on month as investors in China are getting more optimistic about domestic and overseas economic conditions, a survey showed.
In December, the investor confidence index compiled by the China Securities Investor Protection Fund (SIPF) rose to 55.6, up 6.5 percent from November, SIPF survey showed.
A reading above 50 indicates optimism, while a reading below 50 indicates pessimism.
Investors are confident that the stock market is more resilient, with increased willingness to buy, according to the survey.
While confidence on stock valuation dropped slightly, it remained above the line of 50.
Investors are more bullish on domestic macroeconomic conditions and economic policies, while the sub-index on overseas market optimism also rebounded in December to above 50.
China's stock market had a red hot start in 2018 with the benchmark Shanghai Composite Index once registering an 11-day rally.
The strong investor sentiment was partly helped by strong economic fundamentals, as the economy registered the first acceleration in seven years in 2017.
China's GDP expanded 6.9 percent last year, well above the official target of around 6.5 percent, beating market forecasts.
