An astute adage goes this way: "Put not your trust in money, but put your money in trust." The Chinese investors are now a baffled lot trying to gamble with their trust in the risky stock markets. The Chinese bourses almost looked like a casino for them until the recent plunge which was the consequence of the stamp tax hike on stock trading. Nevertheless, before that, it was almost impossible for the Chinese investors not to participate in their pathbreaking stock market rally. The fact that everyday millions of investors opened accounts underscored the skyrocketing interest of the Chinese investors in their markets. Interestingly, even the monks, who have taken the vow of abstinence, couldn't resist opening accounts to reap in huge profits with which they promised to do good deeds.
The seemingly unstoppable Chinese bourses lured investors like no other with its spectacular performance. China's benchmark Shanghai Composite Index, an index that covers both A-shares and B-shares listed on Shanghai Stock Exchange, zoomed up 130% in 2006 and surged by 62% until May 2007. It zoomed past the 4,000 point milestone for the first time ever on May 9, 2007. Amazingly, in just a short span of time, from the second half of the year 2005 to May 2007, Shanghai index surged from a meagre 1,000 point level to a sturdy 4,000 point level. This speaks volumes about the scintillating performance of the Chinese bourses which attracted investors in droves. |
