More Young Chinese Investing in Stocks But Experts Warn of Risks

SHANGHAI – A new breed of well-educated young Chinese are now buying stocks but experts warn of risky investments as most of these young people in China are inexperienced.

Experts are wary about these young Chinese stock investors who are still not fully conscious about their investments and the risk involved in short-term investments.

According to the data released by China Securities Depository Company showed that new stock accounts in the first quarter of the year increased by 433 percent year on year to reach almost 8 million.

Stock Market
Stock Market

Of the total new investors in the first three months of the year, about 62 percent are well-educated Chinese in their late twenties or early thirties, the data showed.

Chinese shares fluctuated this week after a strong rising streak. The Shanghai composite index rose more than 3 percent to hit a seven-year high on Monday, followed by an unexpectedly sharp decline on Tuesday.

“Individual investors must be fully conscious of risks,” the securities regulator said.

As this developed, the 2015 Chinese Mass Affluent Report that Forbes China and CreditEase jointly released showed that the number of Chinese investors could rise to 15.3 million before the end of this year.

The figure represents a 10.1% year-on-year rise.

The report defines Chinese investors as Chinese citizens that have investable assets of at least USD100,000 to USD1 million.

Overall private investable capital by this group increased 12.8 percent to Rmb106.2 trillion (USD17.1 trillion) in 2014 and possibly hit Rmb114.5 trillion (USD18.47 trillion) before the end of 2015. – BusinessNewsAsia.com

[Photo credit: “Shenzhen” by Leon Petrosyan – Own work. Licensed under CC BY-SA 3.0 via Wikimedia Commons]

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