by Ameera Fouad
Millions of small investors in China ranging from students, pensioners, moms, security guards, pop-investors and many more are dominating China’s stock markets, carrying out 80 per cent of all transactions.
Although it could be considered odd elsewhere in the world, it is very common in China to see moms, students, pensioners and many more gather on the weekend to buy and sell stocks. They all gather in what is known as the “street stock salon” in the city heart of Shanghai, exchanging tips and information and talking about their experiences as small investors in one the most intriguing and interesting markets worldwide.
China’s stock markets first skyrocketed to more than double in the six months to May only to crash last June in one the largest drops in China’s economy in recent years. Since June, prices have fallen about 40 per cent amid concerns that growth in the world’s second-biggest economy is slowing down faster than previously thought.
But what these small investors do? Is their aim to gain more money? Or do they just want a few extra Yuan to buy a meal, or maybe spend time with friends?
Wang Cunchun, 90, first invested in stocks in the 1990s after retiring from a stationery store. To him, trading shares is his main hobby but he is never worried about making a fortune from it as he has his monthly pension.
Wang Cunchun is one amongst many elderly investors who have a hobby in stocks, but mostly look to enjoy the company of friends and comrades.
On the other hand, a 16-year-old high school student could be seen chit-chatting with Wang Cunchun and trying to teach him how to use the computer. Trading stocks is also a hobby for the student, Qian Yujie.
Quian began trading at the age of 13, when his father gave him 2,000 yuan to learn about stock investing. He fits trading into his schedule when he has a day off school.
