China's stockmarket is the best performing in the world. The recent volatility has caught everyone's attention. In the months of April and May 24.9 million new stockmarket accounts were opened. As you can see below this increase is accelerating with over 4 million new accounts being opened each week.
Source: Bloomberg
According to the China Household Finance Survey around 2/3 of new stockmarket investors left school before the age of 15. There was also a great interview on CNBC titled Chinese farmers hope to harvest bumper stock profits. Farmers in China now plough their savings in the market rather than ploughing the field. Apparently most farmers in the village now farm outside of market hours. Many of these accounts appear to be retail investors. The number of share transactions has increased dramatically over the last few months see below. It's a great time to be a Chinese stockbroker.
Source: Bloomberg
In the west we worry when taxi drivers and shoe shiners give share tips. When Chinese farmers lay down tools during market hours its probably time to worry about the Shanghai market.
Jason
The material in this article is for informational purposes only and in no way constitutes a solicitation of business or investment advice. The material has been prepared without regard to any client's or other person's investment objectives. Before making an investment decision you should consider the assistance of a financial adviser and whether any investment or service is appropriate in light of your particular investment needs.
