New shareholders flow into stock markets
| Chinanews, Beijing, Jan. 19 – Since the beginning of the year, a huge amount of money have flowed into Shanghai and Shenzhen stock markets. The number of new shareholders registered in the A-share markets is soaring every day and trade volume has exceeded 120 billion yuan for many days consecutively. Lots of people queue in banks to draw out their money, a scene which hasn't appeared for years, Market News reported.
Boosted by the high rising index, many Chinese people open an account in the securities market, hoping to make a pile in the bullish market. However, at this time, stock markets are beginning to fluctuate. Some people eager to make a fortune even borrow money to buy stocks. Information from the China Securities Depository and Clearing Corporation Limited shows that some 175,820 people opened an account in the stock market during the last trading week of 2006, the most since 2001. Since the beginning of 2007, the number of newly registered shareholders has kept rising. Some 290,709 people registered in the securities market in only five trading days. On January 10, the number of new registered shareholders reached 63,579, the most in a single day. As stock index hits a new high every day, more and more people expect to make good gains by investing in the stock market, while previously, most Chinese people regarded real estate as the most ideal way to make money. The growth rate of savings in banks is beginning to decline and flow into stock markets. In some big cities, people even mortgage their houses to buy stocks and funds. However, bank analysts, pawn brokers, people working in intermediate agencies and professional investors all warn that it is highly risky for people to mortgage their houses to buy stocks. They say that investors should make investment based on their actual situation and should not expect to “make a big fortune overnight.”
|