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Dumb Money: 30% Of New Equity Investors In China Have Elementary Education Or Less, Bloomberg Says

Tyler Durden's picture




 

We’ve written quite a bit of late about the incredible rally in Chinese equities which we have variously attributed to inflows from the country’s $2 trillion shadow banking complex, a flood of liquidity from QE-lite among other sources, and Crocodile Dundee-style margin debt, all of which have combined to create what BNP recently called a “self-feeding, leverage-fueled domestic frenzy.”

 We now present, with little comment, the following graphic from Bloomberg — on the right is the breakdown of the education levels for new investors and on the left for existing investors…

And this is what they're buying into...

...and this is how they're doing it...

 

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Fri, 03/27/2015 - 18:02 | 5935477 Id fight Gandhi
Id fight Gandhi's picture

Isn't Asian elementary school equivalent to American post graduate degree?

Fri, 03/27/2015 - 18:10 | 5935507 Kaiser Sousa
Kaiser Sousa's picture

wheres Ed MCman when u need him...

"hey'yo........"

i can hear just like when he used to follow up on Carnac's one liners...

good one man.

Fri, 03/27/2015 - 18:32 | 5935593 gmrpeabody
gmrpeabody's picture

I knew more in the ninth grade then the average four year degreed graduate knows today.

But.., I'm dating myself.

Fri, 03/27/2015 - 19:05 | 5935695 RU-GAY2
RU-GAY2's picture

But in all honesty, a PhD seems to make you dumber than a 5th grader in "the new normal".....

Fri, 03/27/2015 - 19:51 | 5935834 Stuck on Zero
Stuck on Zero's picture

The chart isn't weighted by the amount of money invested so it's useless.

Fri, 03/27/2015 - 18:27 | 5935581 Rock and Hard Space
Rock and Hard Space's picture

I clicked on the article, to say just that.

+1000

Fri, 03/27/2015 - 18:28 | 5935586 booboo
booboo's picture

Idiocracy Asian version

I rike monry, I rike monry arot

Fri, 03/27/2015 - 18:51 | 5935647 ronron
ronron's picture

ha. thanks.

Fri, 03/27/2015 - 19:24 | 5935751 HardAssets
HardAssets's picture

Yet most of them know that gold and silver are money, while most American college graduates do not.

Fri, 03/27/2015 - 20:55 | 5936001 blowing winter
blowing winter's picture

I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... http://goo.gl/9YqZBb

Sat, 03/28/2015 - 05:39 | 5936536 snodgrass
snodgrass's picture

Sum Ting Wong

Tue, 03/31/2015 - 01:08 | 5944589 Laowei Gweilo
Laowei Gweilo's picture

Not really in sciences but in mathematics, they learn first and second year university calculus in basically their grades 10 and 11

grade 12 and the university prep stuff depends cuz you can kinda focus more on technical subjects or writing subjects

and, for what it's worth, the vast majority of the million new millionaires in China are also "illiterate" by that definition

 

and i'm sure most of us rather be that type of 'illiterate and successful' than a western BA literate Starbucks barista

Fri, 03/27/2015 - 18:13 | 5935492 Lea
Lea's picture

Yes, but a Chinese with elementary school education is on a par with an American Harvard graduate. China was and is the country of literacy.

Whereas America... Hillary Clinton has a Yale education. 'Nuff said.

Fri, 03/27/2015 - 18:19 | 5935549 EscapeKey
EscapeKey's picture

25 years ago we all heard this crap about the Japanese. Fact is that the Chinese are just as lazy as us.

Fri, 03/27/2015 - 18:33 | 5935598 TungstenBars
TungstenBars's picture

When I see many Chinese driving around stores in rascals then I'll agree with you. 

Fri, 03/27/2015 - 18:43 | 5935626 EscapeKey
EscapeKey's picture

You know, that just might have something to do with only the rich being able to afford moving across the Pacific.

I live in a university town in the UK. Shitloads of Chinese students. And they all carry the latest iPhone, Louis Vuitton handbags, and some god-awful trainers that no doubt have a triple digit price tag attached to them.

Fri, 03/27/2015 - 18:51 | 5935648 sun tzu
sun tzu's picture

Not even close. It's hard to find a lazier, more entitled group than the average Boobus Americanus. What other country in the world has such a huge percentage of its population on welfare and the up-and-coming generation of idiots as big as US millennials? They think the world revolves around them and their career will be tweeting and making facebook posts.

Fri, 03/27/2015 - 19:00 | 5935678 EscapeKey
EscapeKey's picture

You're wrong. The US is nowhere close to the top in terms of outgoings.

http://en.wikipedia.org/wiki/Welfare_state#Effects_of_social_expenditure...

 

Fri, 03/27/2015 - 21:15 | 5936036 Totentänzerlied
Totentänzerlied's picture

Don't even bother arguing with them. I'll explain how it works with ZH commenters in a single sentence:

If America can't be the very best, it must be the very worst.

Forget that half of China has never heard of bacteria and is every bit as functionally illiterate as a randomly chosen American, clearly they're the smartest, it has NOTHING to do with the fact that the distribution of intelligence confroms to a standard normal (Gaussian) distribution and that there are roughly 4 Chinese people for every American person necessarily implies that for every smart American person there are roughly 4 smart Chinese people.

The only question in 99% of commenters' minds seems to be: how can this be spun to become a cheap shot against Americans. Of course, it is actually a form of sublimated xenophobic racism against, in this case, the Chinese. They used to be pitifully dumb (Opium Wars, anyone?), now they're frighteningly intelligent.

Anyway it's a huge waste of time, commenters here salivate on command.

Fri, 03/27/2015 - 22:18 | 5936145 KingFiat
KingFiat's picture

Some Chinese are frighteningly intelligent, some are pitifully dumb. Just like any other people.

This article is not about Chinese vs Non-chinese investment behaviour. It is about how people invest vs education level, based on data from China.

 

 

Fri, 03/27/2015 - 22:33 | 5936177 antidisestablis...
antidisestablishmentarianismishness's picture

You better say you're sorry or I'll tell Vlad and he won't like it!

Sat, 03/28/2015 - 05:50 | 5936542 RaceToTheBottom
RaceToTheBottom's picture

"If America can't be the very best, it must be the very worst."

PLus a smattering of "anything lately is worse than the way it was before"

Either way a great post, thanks

Sat, 03/28/2015 - 07:29 | 5936599 Dr. Bonzo
Dr. Bonzo's picture

Oh, I can think of quite a few. France, England, Holland, Denmark.... the self-loathing is rampant on here eh. Americans gaming the system. Nothing more, nothing less. People respond to incentives, and all the incentives are stacked against them. That doesn't make Americans lazy. That makes them pragmatic.

I've worked in 4 countries on 3 continents. Have you? I can state unquivically that the average American worker is the most industrious, self-motivated, hard-working and thorough of any worker I've seen, some exceptions permitted. On average, if I had to put together a crew of say 10-20 people for any given task and were given the choice of a group of Americans, Dutch, Koreans, Chinese or Japanese I'd pick the Americans without hesitation. I think the only group of workers who can give Americans a run for their money are Germans.

Sat, 03/28/2015 - 07:24 | 5936592 Dr. Bonzo
Dr. Bonzo's picture

That explains the run on American schools by them then. SMH.

Fri, 03/27/2015 - 18:12 | 5935516 orez65
orez65's picture

"30% Of New Equity Investors In China Have Elementary Education Or Less ..."

MORE THAN 30% of Federal Reserve economists have a PHD OR MORE!!!


Fri, 03/27/2015 - 18:51 | 5935652 sun tzu
sun tzu's picture

The difference is ignorance vs evil

Fri, 03/27/2015 - 22:07 | 5935542 Wild Theories
Wild Theories's picture

education level? wtf? so where are the stock-picking millionaires with doctorate and post-doc degrees?

why the fuck aren't any university lecturers astute investors or rockstar daytraders? 

should I call Sheldon and Leonard for hot stock tips now?

Fri, 03/27/2015 - 18:26 | 5935566 reader2010
reader2010's picture

Widsom of the masses? What is popular is called "vulgar" by the Romans.

Fri, 03/27/2015 - 18:38 | 5935611 localizer
localizer's picture

Elementary school is one thing, but 5.8% (!!!) Not Literate?? WTF?!

Fri, 03/27/2015 - 18:54 | 5935659 sun tzu
sun tzu's picture

Over 45% of Detroilet is illiterate. The previous head of the Detroilet ISD was found to be functionally illiterate and charged with sexual assault.

https://www.youtube.com/watch?v=YPGGX9mDaZo

Sat, 03/28/2015 - 08:51 | 5936658 snodgrass
snodgrass's picture

That's because 85% of Detroit is black. I'd guess the illiteracy rate is actually highier. Most blacks graduate high school when they have only mastered 6th grade material.

Fri, 03/27/2015 - 18:49 | 5935644 Bunga Bunga
Bunga Bunga's picture

Perfect setup for a bull run. This time it's really different.

Fri, 03/27/2015 - 18:53 | 5935655 Odin McHaggis
Odin McHaggis's picture

Commies probably stole a trick from the U.S. and auto-enrolled all the shmucks in their "401K'' F.U. plan. And most are too scared to opt out. 

Fri, 03/27/2015 - 19:30 | 5935763 adr
adr's picture

I said a few months ago when I got back from China that the people there were starting to believe the great con, that the path to wealth lies in the stock market. Instead of working hard, business owners are getting IPO fever and trying to ramp up fake revenue to IPO and get out of dodge.

Jack Ma becoming China's richest man because of the stock market has ruined business in the country.

well the millions of stupid Chinese will find out the hard way when their money goes poof.

Fri, 03/27/2015 - 19:49 | 5935828 HardAssets
HardAssets's picture

The Chinese love to gamble. They have a long history of this.
They also put money in gold and silver.

Would they put the entire family fortune into paper gambles with nothing to fall back on ? Maybe, but I doubt it.

They have a thousand year memory of getting burned by paper.

Fri, 03/27/2015 - 20:38 | 5935961 jonytk
jonytk's picture

they put money on bitcoin until financial institutions were banned to have anything to do with it around the end of 2013.

Sat, 03/28/2015 - 04:27 | 5936509 roddy6667
roddy6667's picture

Not to worry. they also have a large savings account and a house (or two) without a mortgage,

I'm not talking about rich men, just Chinese Larry Lunchbox and Joe Sixpack.

The savings rate is 36% in China. The home ownership rate is 130%. Until 1998 the government bought everybody a house based on their pay and job performance.

Sat, 03/28/2015 - 05:53 | 5936544 RaceToTheBottom
RaceToTheBottom's picture

Interesting statistic of home ownership.  It needs further analysis.  Does that mean that 30% of housing is empty? or second homes?

Fri, 03/27/2015 - 19:33 | 5935777 robnume
robnume's picture

No comment on the atrocious grammar and spelling in some of the above comments.

Fri, 03/27/2015 - 22:10 | 5936129 Wild Theories
Wild Theories's picture

I am one of them, I apologize.

Sorry for the offence mom.

Sat, 03/28/2015 - 08:01 | 5936623 HardAssets
HardAssets's picture

You wrote a sentence fragment.

Fri, 03/27/2015 - 19:39 | 5935794 besnook
besnook's picture

but they know more than the average bachelor degree receipient from a usa college.

Fri, 03/27/2015 - 20:26 | 5935929 ZKnight
ZKnight's picture

I completed a bachelor degree and still not 1 subject on money, currency or investing. How is this article relevant? Here is financial education 101:
Gold is the money of Kings
Silver is the money of gentleman
Barter is the money of free men
Debt is the money of slaves
- Norm Franz

Fri, 03/27/2015 - 22:58 | 5936232 rejected
rejected's picture

Just what education level is required to BTFD ?

Sat, 03/28/2015 - 02:08 | 5936443 hibou-Owl
hibou-Owl's picture

Mass Behaviour!!!

It is a perfect Elliot wave impulsive run.
Have a quick look at the price action in the article, currently trading in the Minor third wave of Major five.
This last third wave had a gap as the masses piled in, when all the dumb money moves in nothing is left to support the price.

Since wave current wave three is strong, my bet is a small pull back and the last push higher will be weak and fail.

It's over cooked

Sat, 03/28/2015 - 04:11 | 5936506 The Ingenious G...
The Ingenious Gentleman's picture

I wondered why gold sales were down in China. More money going into stocks, less into gold and property:

Mainland China imports less gold from Hong Kong as prices fall

http://www.scmp.com/business/commodities/article/1748064/mainland-china-...

Sat, 03/28/2015 - 07:21 | 5936588 Dr. Bonzo
Dr. Bonzo's picture

These are the same chimpanzees that were clogging our streets for the last 5 years buying gold as it hit all time highs and you were all proclaiming them fucking geniuses.

Pffff......

 

Sat, 03/28/2015 - 07:40 | 5936607 strangewalk
strangewalk's picture

It's a complete myth that the Chinese are so smart. I taught English at a good university in Shanghai and as an indication, most of my students could not locate India or Russia on a world map--two huge countries that border China--and after one year most of them scored no higher in English than when they started. In China and Japan, high school is the time when they burn their brains out through endless, mind-numbing rote learning 16 hours per day. By the end they've developed a hard-core glazed over look (you can see this real easy) and college is viewed as a reward when they can relax and engage in lots and lots of drinking and sex. However, about a third of the students can't even pass the entrance exam, so their parents buy their way in. That's why the admin staff at Chinese universities are all driving new Mercedes and BMW SUV's. (mysteriously, it is these very students who always seem to graduate at the top and are offered the best jobs) 

Sat, 03/28/2015 - 15:08 | 5937438 Max Steel
Max Steel's picture

THANX

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