Chinese Netizens: "Have You Closed Your Stock Trading Account Today?"
Created: 2012-07-20 15:52 EST
"Have you closed your stock trading account today?" That question's become a catchphrase on the Chinese Internet this month.
It reflects what may be a growing lack of confidence in China's stock markets—at least among some individual investors.
China has two main stock markets: Shanghai and Shenzhen. In the first half of this year, trading volume in both dropped 30% from the same period last year.
And China's two biggest brokerage firms, Citic Securities and Haitong Securities, have seen big drops in net profit partly as a result.
For the week of July 6, the number of new A share accounts—that is, for individual investors—was just 72,000. That's the lowest since 2008.
Since two-thirds of China's A shares are owned by the government, it's easy for the government to manipulate share prices. That's led many Chinese to call the stock markets state-run casinos.