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One Third Of All Chinese 'Gamblers' Have Shut Their Equity Trading Accounts
It turns out making money trading stocks is not "easier than farmwork" and, as China Daily reports, a stunning 24 million Chinese 'investors' have shuttered their trading accounts since the end of June. Unlike in the U.S., where institutions dominate stock trading, retail investors are king in China, owning around 80% of listed stocks’ tradable shares, according to investment bank CICC. With the number of small investors holding stocks in their accounts sliding to 51 million at the end of July from 75 million at the end of June, it appears some grandmas and farmers have learned their lesson (for now).
A-Share accounts with transactions have plunmged over 20% in the last few weeks...
But, as The Wall Street Journal reports, China’s market selloff can safely be declared a rout.
Nearly a third of the country’s individual investors—more than 20 million people—fled the plunging stock markets last month.
The number of retail investors holding stocks in their accounts slid to 51 million at the end of July from 75 million at the end of June, according to China Securities Depository & Clearing Corp., the government agency that tracks accounts.
But bank deposit is still the favorite investment tool for Chinese families. As China Daily notes,
Up to 50 percent of disposable income will end up in families' saving account, according to data from World Bank. Due to recent volatility, it is unlikely that many families will move their money from saving account to stock market.
As one newly minted stock trader explained...
“Now I realize I can lose a lot of money very quickly,” he said, noting that threats to stocks include China’s slowing growth and the eventual end of government rescue efforts.
But - there remains some who will never learn...
“Where else can I put my money?” said Helen Lu. “Real estate is so expensive and beyond our reach, and there are no other good investment channels.”
Sound familiar?
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I wonder where the money invested by those 24 million investors ended up? Oh right. It's why Jamie (and Lloyd) are richer than us.
Is there a Chinese version of the eTrade baby losing everything?
https://www.youtube.com/watch?v=AYrpROr9Gmk
Maybe someone shoulda translated this one for them about 6 months ago...coulda saved 'em a whole lotta yuan fiat and high-rise window jumpers.
I bet most of them thought they would "win" a bunch of fiat so that they could eventually cash-in and buy phyzz gold and silver.
Yeah...nice try.
Here is one :P
https://www.youtube.com/watch?v=vIMwMsY0ndo
Only not chinese.
dude! I totally remember that one from way back then! damn....that was brutal. couldn't even believe it was posted on the youtubes.
I work with a guy who does the day trading shit...he was doing all these micro bio and tech stocks and at one point got up like 50,000 bucks.
But at that point he thought it was still going to go higher and didn't take his sick profits and stayed in.
Next day....DONE! It all collapsed and he couldn't get out...lost it all plus his investement capital.
I never said anthing before that to him, but I did to a friend. For some reason I just knew he was fucked and shoulda got out and banked the profits.
That dude still hasn't mentally recovered from it. He was as torn up as the dude in this video when it all went down. It was kinda funny though. hahahaha
Don't think of it as market losses. Think of it as tuition.
The Chinese have simply closed their accounts and moved money elsewhere, whereas the USA market crash bankrupted lots of Americans so their was little need to close an account when your've lost 100%. Nothing to move elsewhere.
I thought I saw China man on fire running past me
Is ZH going to have a Live Feed of the Debates?
I was walking on wall street the other day, meeting a friend for drinks (not in finance), and two twenty-something, suited up douchebags were talking, and the one was making that exact statement to the other: "where else are people going to put their money?" I laughed out loud.
Wow, TD Ameritrade doesn't move that fast.
Whatever---my experience tells me that a new sucker is born every second and the crime syndicate in China has studied the U.S. and knows full well how to handle that. Think about it! When you can print "labor" and "resources" out of thin ari pretty much anything is possible---including fleecing generation after generation of well-intentioned people. Face it---we live in a matrix and their is no escaping. The only hope anyone has is to obtain a position of power whereby you execute evil over others---either you are a victim or a predator. This is not a China issue----they have simply learned from their idols in the west who have perfected the art of financial crimes against people who only wanted to have a simple and happy life---to provide for themselves and their families in harmony with others. That is not possible in upside-down land----fuck or be fucked is the law of the land, and if you think for one minute that education or logic makes one iota of differnce you are a mark for the predators.
In the post war period, retail participation in the US stock market was far greater than today. Spokespersons for the exchanges promoted the idea of "peoples' capitalism." and the public participated in tours of the exchanges, etc. But relatively few US retail investors fell into the gambling mentality that has apparently occurred in China - preferring to be long term planners and builders of individual retirement nest eggs. Cultural differences, I suppose.
Close your stock accounts and buy gold!
Unpatriotic Chi-Coms! Give them the lash!!!
They'll be back. They got their first taste.
http://www.ft.com/intl/cms/s/0/f3d94f92-2715-11e5-9c4e-a775d2b173ca.html...
FT claims that china retail investors own <5% of all stocks. does anyone know who is right and who is wrong on this point?
Lol Stawk Market 101 easy come easy go. I guess in Commie China they don't teach easy go part...the Chinese farmers have to learn the hard way. Keep at it in the rice paddies boys
I'm not sure that being margined out counts as "closing your account" any more than being thrown into the alley by the club's bouncers after losing all your money at roulette counts as "calling it a night".
retail investors are king in China, owning around 80% of listed stocks’ tradable shares... tradeable shares, lulz. that's like saying retail investors own the lion's share of tradeable usa treasurys.
Like the US in 2008, China may be the next country to cause a global banking collapse.
time for gold
1.5 billion people .... buy one ounce of silver each, make a new bubble please
man, when you think about it, if the Chinese government is going to be there to buy your shares when the panic starts...why not be a bubble investor in China? The gov will always be the bag holder.
Tell you what China, you send us stuff, we'll send you money, you invest the money in your stock market, and our investment banks and hedge funds will skin it out of you? Deal?
Deal??
Recently the figure of 260 million trading accounts in China has been provided
HOLD IT! HOLD IT...!
"...in the US, where institutions dominate stock trading..."?????
You mean, they dominate stock HOLDING.
With endless cheap money, they never have to sell...which is why we never have corrrections anymore.