ANZ-Roy Morgan China consumer confidence index rebounds in Oct.

ANZ-Roy Morgan China Consumer Confidence Index, rebounded from the record low set in September, increasing 1.2 points to 139.6 in October, according to statistics released Wednesday based on a survey conducted by the ANZ Bank and the Roy Morgan Research.

Liu Ligang, Chief Economist with ANZ Greater China, said the rebound of the Consumer Confidence Index is an active signal for stabilization of economic growth.

The survey showed that 42.8 percent of respondents hold their household financial conditions improved from a year ago in October, up 2.4 percentage points from the previous month. Meanwhile, some 51.3 percent of respondents think their household financial conditions will be better in 2016, down 1.3 percentage points from September; while 7.4 percent of respondents hold the conditions will deteriorate next year, down 0.4 percentage points from a month ago.

As of the entire economic environment, 58.3 percent respondents reckon that China's economic situation will improve next year, an increase of one percentage point from September; while 13.2 percent respondents predict the economic situation will be worse, down 1.7 percentage points.

With regard to long-term economic prospect, 67.1 percent respondents hold China's economic prospect will improve in the long run, up three percentage points from September, while 12.8 respondents hold the prospect will be downbeat, down 0.6 percentage points from the previous month.

The survey also showed that 38 percent respondents hold that it is now an excellent opportunity to purchase durables, up 0.5 percentage points from September.

Liu predicts service industry will continue to outperform manufacturing industry, which will help back GDP growth in the fourth quarter.

Liu also predicts that the People's Bank of China, the central bank, will further cut the required reserve ratio (RRR) for deposits by 50 basis points in the fourth quarter, and the central bank is likely to further cut benchmark interest rate, lending rate in particular, on rising deflation risk.