The recent Everbright dramas are not just causing reverberations in the financial industry, but influencing retail investors as well.
While it’s too early to draw any conclusions about the effects of Friday’s problem at China Everbright that apparently caused the stock market spike, some investors say what happened is affecting their confidence in the already-weak mainland stock markets. Zhang Tao reports...
Watching the stock market is now what retiree Chen Xiaoming does all day. And he says he’s never seen the kind of ups and downs that happened last Friday in his more than ten years playing the stock market.
"Rare to see this. I saw all blue chips went up. My phone went crazy, and my friends were talking about the T plus Zero reform, or about the malfunction at Everbright. But later my friends said Everbright confirmed there was no malfunction at all. So we believe a bull market will come." Chen Xiaoming, Investor said.
Chen says he followed the trend and bought about one million yuan in blue chip stocks Friday morning. And after the noon break, he watched the shares he had just bought going down.
"The situation in the afternoon implied that the event was not so simple as it seemed. So I sold as many shares as I could to hedge my losses." Chen Xiaoming said.
Unlike Chen, Shen Yijian didn’t rush into the market last week. He said although he escaped any losses, what happened Friday has undermined his confidence in the stock market.
"One or two investors probably could get compensation, but it can’t happen to everyone, because it is too hard to calculate losses. But we can see that while the US market has recovered rapidly, our market remains weak." Shen Yijian, Investor said.
Analysts estimate Friday’s problem may cost investors more than ten billion yuan.