Chinese Stock Market in Distress; Investors Losing Heavily, Left Trembling! (Video Screenshot/People News Report)
[People News] "Zhejiang Daily's" Tide News reported on October 23 that recently, the stock market has become a hot topic of casual conversation. Chinese state media is hyping up a bullish market atmosphere, enticing some younger investors from the '90s and 2000s to open accounts and rush into the market.
The report mentions an experienced investor named Ding Yue, who started trading stocks in 2005 but recently suffered significant losses. Ding Yue said, "I added some leverage recently, and in just one day, I lost one million yuan (RMB)." She mentioned that this even led to a major argument with her husband.
Ding said that a few years ago, she spent tens of millions on a house. Her biggest hope now is that her stocks recover soon so she can pay off her mortgage.
Ding is just one of many investors experiencing losses. In early September, the A-share market surged under government stimulus, prompting many investors to put all their savings into the stock market, even resorting to heavy borrowing. However, by October 9, the market took a severe hit, with over 5,000 stocks in the A-share market dropping, 854 companies hitting their limit down, and widespread distress throughout the market.
On October 22, author Yuan Bin wrote online: "In recent weeks, many Chinese investors who jumped into the market following the trend have suffered heavy losses due to continuous stock declines, flooding the internet with complaints and regrets, saying 'I thought it was an investment, but it feels more like fraud.'"
The article pointed out, "In recent years, the Chinese stock market has been in continuous decline, mainly due to the ongoing downturn in the Chinese economy, with market sentiment clearly pessimistic about future economic prospects. Under such circumstances, how could the stock market not fall?"
The article continued, "During major holidays, the Chinese government often uses administrative measures to create a false 'prosperity' image, effectively exploiting citizens by propping up the market to artificially inflate stock prices. At the same time, they spare no effort in deceiving and misleading the public by creating a media hype around an anticipated stock boom, and deploying 'market cheerleaders' online to push people into believing that if they don’t invest now, they’ll miss out on a rare opportunity for wealth."
"This drives uninformed, average citizens, hoping to get rich through the stock market, to rush in, even going so far as to sell houses or take loans to buy stocks."
"In the short term, some people indeed make money. But without economic fundamentals to support it, a market artificially propped up by the government soon returns to its previous state and drops again. When this happens, the profits that most investors earned quickly evaporate, leaving many trapped and some even losing everything!"
The article added, "Recently, the stock market is just another repeat of this pattern."
"If there is any difference from previous instances, it's that this time, the Chinese government is urgently trying to boost economic confidence and exploit ordinary citizens, making their market intervention and propaganda more intense than ever. More people are being misled and suffering losses. This painful lesson serves as another warning: trusting the Communist Party's stock market propaganda ultimately only leads to regret."
The article concluded, "If this applies to the stock market, isn't it the same in other areas as well?!"
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