Entries RSS · Stock Market in China is absolutely crazy
Message from Jeremy: To all Tech IT Easy readers, who could obviously not necessarily remember the initial announcement, I have invited blogger Lucien to write about Web 2.0, China, and many other things that happen to interest him at the moment. Lucien, they’re all yours!
I am among the minority who didn’t notice the recent bull market trends in Chinese stock market. I never really look at what is happening in the market, because I never bought any or sell any in my life. Maybe people outside Chinese also didn’t pay attention to the performance. Here is what happened.
4 Times Increase
The Shanghai Stock Exchange Index was 998.23 in June 2005. Yesterday, it reached 4151.42, which is the highest in the history of the stock market, and almost four times than two years ago, and keep increasing.
Buy stock in China is always like buy lottery
If you bought the right stock, you can get 50% gain in days, and if you are not lucky enough and get the bad stock, it will shrink at the same speed. Unlike NASDAQ, the stock price in China has a threshold. If it raise or drop too much, it will stop trading and hold until the next day.
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Hello Lucien,
The picture is hardly readable. Could you maybe change it for a chart showing the recent stockmarket rally?
Many thanks for the threshold info. I didn’t know about it and find it very interesting.
Tracking stocks has become one of my most recent passions.
From what I understand, this dramatic increase is widely believed to be caused by a bubble. This article explains a little of what was going on on the day you wrote this, Lucien. And for some more high-resolution tracking, you can check out the google-finance pagefor DJSH. As you can see, the bubble has since somewhat collapsed.
Buying Chinese stock is indeed like entering a lottery.