It has been a tough three weeks for millions of regular Chinese who invested vital savings in the country's stock markets.
"I have been trading in the past few years, but this market plunge is unprecedented," said one retiree, referring to the nearly 30-percent drop since the markets peaked on June 12. By early July, $2.8 trillion in value had been wiped out.
"Almost all of the folks here have lost money in the last few weeks," added Wang, who asked to be referred to by his surname, like other investors NBC News spoke to on Monday. "Many of us here are retirees, we invest our pension money in the stock market."
The recent falls have sent ripples of panic through the legions of retail Chinese investors, many of whom borrowed heavily to invest in largely unregulated markets that doubled in value during the last year alone. Financial insiders agree that the government hastened the bull run in order to help fund heavily-indebted companies and manufacture a "feel good" consumer spending boost.
Now the bubble in the Wild West of the investment world is bursting, prompting jitters about the stability of the world's second-largest economy and providing a painful lesson that prices go down as well as up. Full story...
Related posts:
"I have been trading in the past few years, but this market plunge is unprecedented," said one retiree, referring to the nearly 30-percent drop since the markets peaked on June 12. By early July, $2.8 trillion in value had been wiped out.
"Almost all of the folks here have lost money in the last few weeks," added Wang, who asked to be referred to by his surname, like other investors NBC News spoke to on Monday. "Many of us here are retirees, we invest our pension money in the stock market."
The recent falls have sent ripples of panic through the legions of retail Chinese investors, many of whom borrowed heavily to invest in largely unregulated markets that doubled in value during the last year alone. Financial insiders agree that the government hastened the bull run in order to help fund heavily-indebted companies and manufacture a "feel good" consumer spending boost.
Now the bubble in the Wild West of the investment world is bursting, prompting jitters about the stability of the world's second-largest economy and providing a painful lesson that prices go down as well as up. Full story...
Related posts:
No comments:
Post a Comment