Chinese People's Anti Inflation Combat
China's inflation has climbed to a record high in just over two years, prompting people to reconsider their saving plans. Many have reached out to diversify their investment portfolio. Our reporter Yingying has more.
According to a survey conducted by China's central bank, investment has overtaken saving to become Chinese people's first choice in personal financing. 45% of those questioned ticked the choice of 'More investment', which includes purchasing bonds, stocks and funds, only 37.6% chose 'More saving.'
Investing in stocks is one of the most popular choices. Two retired workers discuss their shares in a trading room.
Soundbite 1222 workers"-whether it can be stable is a very big question mark. Look at these two points, here, on this chart..."
"So how are petrol shares performing, in your opinion?"
The Chinese stock market started its engine five years ago. A "stock market frenzy" took place in 2007 as speculative traders rushed into the market, making China's stock exchange the world's second largest in terms of turnover. The benchmark Shanghai Composite Index reached an all-time high of 6,124 points on October 16, 2007. That year, almost everyone in China became a stock investor.
But the frenzy could never last. The Shanghai Composite Index ended down a record 65% in 2008, mainly due to the impact of the global economic crisis.
People lost money, but didn't lose confidence in the markets. Analyst Zhang Guojiang from Sinolink Securities says that, as the capital market expands, more investment channels will be available.
"In addition to the well-known A shares B shares, the Growth enterprise market was also opened last year, before that was the SME market, at the same time funds have also increased, such as index funds, equity funds, debt funds, investors can invest in all of these varieties."
Apart from stocks, surging property prices make real estate a rewarding investment vehicle. And enthusiasm for art collection keeps jumping, as is demonstrated from continuing record prices at auction houses.
It doesn't really matter which investment vehicle people are choosing, as long as it has a higher return than the interest rate.
For CRI, I'm yingying.