Stock investment is increasingly in demand, especially during the COVID-19 pandemic. The stock market in China noted that there are millions of new investors in 2020.
Quoting from CNBC, Friday (22/1/2021) according to the China Securities Depository and Clearing in December 2020 alone, the Chinese stock market recorded 1.62 million new investors. Double the 809,300 number last year.
If totaled throughout 2020, new investors in China increased by 18.02 million to 177.77 million. That means there are 1.5 million new investors each month. This surge was driven by many people who were forced to stay home and want to invest their money.
The increase in interest in China stock investment made stock exchanges such as Shenzhen up 38.7%. And CSI 300 up 27.2% in 2020. The increase beat the gains of the S&P 500, which rose 16.26%.
According to Ernst & Young, China and Hong Kong alone accounted for 40% of the world’s initial public offerings in 2020. The Shanghai Stock Exchange was ranked first in the world with 233 IPOs, while Shenzhen was in third place, right after Nasdaq, New York.
According to Wind’s data, China’s interest in local stocks was also high earlier this year, with trading volume for listed A-shares exceeding 1 billion yuan or US $ 154.32 million on 11 of the first 13 trading days of 2021.
Shares A are shares Chinese yuan-denominated companies listed on the Shenzhen or Shanghai exchanges.
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