In ten of China's largest cities, including Beijing and Shanghai, over 40 percent of the urban
residents have currently invested in the stock market. Since May 9
the index has been over 4,000 points. It has enticed everyone out
for the big bucks.
On May 19 alone, 240,000 people opened A-share exchange accounts
but this number pales in comparison with the record high of 368,000
opened accounts on May 8. Some investors have sold their houses and
dipped into their pension funds, reflecting the craziness that bull
markets often create.?
This stock market craze has influenced how the Chinese spend
both their money and their time.?
For the last several months big city taxi drivers have changed
their tune: they listen to stock analysis shows instead of traffic
reports. Even vegetable vendors are cluing into the financial news
along with (their beloved) feature stories.
Moreover, female fashion magazines now dole out financial
investment advice along with their more intimate columns.
These examples, however, do not fully reflect the impact of the
Chinese stock market, for the booming stock market has
inadvertently prodded people to seriously study China's burgeoning
economy.
In Beijing's most influential college Internet Bulletin Boards,
students and white collar graduates with a simple click now log
into the hottest forum: stock market discussions.
Mr. Xin Lifu is a post-graduate from the Chinese Academy of
Sciences. He is also a shareholder with six month's experience in
stock investment. "In the past I just watched the CCTV News
Broadcast once a while; international news interested me the most.
But after I started investing in (Chinese) stocks, I started to
focus on all kinds of domestic news, such as rising interest rates,
Renminbi appreciation and so on," he commented.
Mr. Xin suffered several gains and losses because of
considerable market fluctuation. "In the beginning I was a newcomer
in the stock market so I just simply copied other people's moves.
Now I understand that I need comprehensive knowledge in order to do
an objective analysis on prospective companies before I decide to
invest in them. In short, my inclination is toward prudent and
conservative investments," he concluded.?
The Internet has various tools that help all kinds of investors
to financial exchange information. Inside assorted QQ chatting
groups, everyone, from housewives (up to executives), can turn to
experts for stock investment advice. They can even comment on the
alterations of central bank's policies. "No matter how their
comments look, profound or shallow, people are learning how to
observe and how to express themselves", said Wang Liming, a
newcomer in the stock market and a TV financial program planner.
"Perhaps most of these (new) investors just want to get an idea of
China's economic trends and (understand) the already existing
problems through their investment acts. I, for one, have certainly
been educated by this market."
Mr. Wang added, "While the stock market is changing us as
investors, perhaps it is also significantly transforming China's
economic structure and social structure as well."
(China.org.cn by Pang Li, May 25, 2007)