The investor confidence index compiled by the China Securities Investor Protection Fund Corp. (SIPF) dropped from 54.9 in June to 51.6 in July.

The decline was mainly affected by sharp drops in the stock market in the latter half of last month, the SIPF said in a latest statement.

However, this was the first time for the index to stay above 50 for two consecutive months since the beginning of this year. Readings above 50 signal investor optimism.

The statement said the sub-index for economic fundamentals dropped to 50.8, also above 50 for a second month as the economy was still generally steady.

Data from the National Bureau of Statistics showed that industrial output in July expanded by 6 percent, the same as the pace for the first seven months.

The sub-index for the intention of purchasing stocks dropped to 47.7, as investors decided to take a wait-and-see attitude, the SIPF said.

(Xinhua News Agency August 14, 2016)