0 Members and 1 Guest are viewing this topic.
Stock Market 101 (Chinese Edition)
The reality, however, is most investors are in the red – in fact, it is likely no money has been made during this equity boom whatsoever. The reason is because peak inflows occurred just before the recent selloff; money lost by latecomers is greater than gains made by earlier investors.”
For months, state-owned media had encouraged ordinary Chinese to load up on shares. Many Chinese individual investors borrowed heavily to buy stocks — taking out so-called margin loans. And the rising stock prices encouraged companies to raise money by issuing shares and to use the proceeds to pay down debt.