Millions of Chinese investors rushed into July’s stock market rally
FILE PHOTO: Men wearing face masks are seen inside the Shanghai Stock Exchange building, as the country is hit by a novel coronavirus outbreak, at the Pudong financial district in Shanghai, China February 28, 2020. REUTERS/Aly Song
SHANGHAI (Reuters) – China reported the largest number of new stock investors in five years in July, as millions of individuals rushed into a buoyant share market, boosting trading turnover and brokerage earnings.
The number of new investors in mainland Chinese shares totaled 2.4 million in July, the most since June 2015, the peak of China’s massive stock bubble that later burst, according to official Securities Times.
It represents a 60% jump from a month earlier and a year-on-year increase of 124%, according to the China Securities Depository and Clearing Corp (CSDC).
Investors sought high returns in a stock market that jumped over 10% in July, helping boost turnover. Stamp duty income from securities trading rose 35.3% year-on-year during the first seven months, compared with a 8.7% fall in fiscal revenues as coronavirus hit the economy, official data shows.
Hectic trading benefits brokerages. Over 25 listed brokerages reported a profit jump of over 50% in July, Securities Times reported.
Reporting by Samuel Shen and Andrew Galbraith; Editing by Sam Holmes
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