Free Chinese Lesson - Chinese stockholders expect market to turn

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Chinese stockholders expect market to turn

www.chinanews.cn 2005-02-16 14:40:17

Chinanews, Feb. 15 - "Good luck" and " May you be prosperous," sayings
that are often heard during the Spring Festival, have become a reality
for stockholders like Meng Wei. Like many private investors, Meng Wei has
suffered a lot of setbacks in stock market speculation in the last few
years. The subject of the stock market naturally arose during a recent
New Year's visit. " I entered the stock market in 2000 when share prices
were at their highs, and I spent 150,000 yuan buying shares. " The stock
market has been falling over the past years, making many shareholders
feel trapped. "I hope the stock market will turn favorable as soon as
possible so as to let me escape this trap as soon as possible." Meng Wei
said repeatedly during our conversation.
When the reporter mentioned many people's optimistic outlook for this
year's stock market performance, Meng Wei remarked that, "the market may
turn favorable; anyway we who are trapped can only hope for liberation,
nothing more. Even if stock prices rise sharply, we have no cash on hand
to take advantage of that. We want to make money but have no more
capital," said Meng.
Meng Wei's experience in market speculation is representative of the
experience of China's 70 million stockholders. For various reasons, the
fourteen year-old Chinese stock market has not become a barometer of
China's prosperous economy. The annual growth rate of the Chinese economy
has exceeded 9% on average since 1978; however, the stock market has been
stuck in steady decline. Hundreds of thousands of stockholders have not
shared the fruit of China's high-octane economy, but are losing again and
again; soon they may decide to pull out of the market completely. Meng is
of the view that individual investment should be rational and cautious.
"Individuals should not shift all the blame onto regulatory institutions
and the government once they lose on the stock market."
Most stockholders and specialists believe that the Chinese stock market
is gradually improving. The exchange's management is striving to solve
the issue of the distribution of stockholder's rights, a positive signal
for the market.

          ��Chinese stock market rebounded from its nadir (2005-02-03)
          ��Stock market still falling in the year of Rooster (2005-02-02)
          ��Chinese stock market slumping again (2005-01-21)
          ��Foundation of China's stock market is in danger of collapse
(2005-01-19)

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