Nearly a quarter of investors say that the value of their investments has fallen by more than 50 percent since the beginning of the year amid falling stock prices, according to an online survey.
23.8 percent of the 42,000 people polled by Sina said that they “had suffered a loss of over 50 percent and dare not check their accounts” since the beginning of the year. A further 27 percent said that their investments had fallen by up to a half over the same period.
Some 26.5 percent said this year’s gains have been wiped out since the stock market slump started on June 13. Just over 10 percent said they remained in profit, but with had made gains of less than 50 percent. Only 6.6 percent of the people polled said that they had made a profit of 100 percent or more on their investments since the beginning of the year.
Mainland stock markets, which had been enjoying an unprecedented bull run, surged to a seven year high on June 12. Xinhua claims that the 150 percent increase in the value of the Shanghai Composite Index over the past 12 months was partially fuelled by margin trading, essentially borrowing money in order to throw it at the stock market.
Since mid-June, stock markets have plunged by around 30 percent. In a bid to calm the market, the 21 largest brokerage firms in China said yesterday that they would collectively spend 120 billion yuan (around $19.3) buying stocks, CNN reports.
Back in March, Bloomberg economists indicated that China’s stock market rally was being driven by uneducated investors, with more than two thirds of new investors entering the market having less than a high school education.
By Dominic Jackson
[Image via Sina]