Recently, the Chinese stock market, after years of continuous decline, saw a rare surge that sparked a frenzy in the market. However, the good times did not last long as A-shares experienced a sudden drop, causing substantial losses for many investors. One such investor in Zhuzhou, Hunan Province, saw his initial investment of 600,000 yuan over 8 years dwindle to a mere 336 yuan, leading him to realize that stock trading is not as easy as he had imagined.
On October 10th, the major indices of A-shares experienced significant volatility. The Shanghai Composite Index opened with a decline, briefly turned positive, then fell back in the afternoon session with reduced gains.
According to the report by the “Daily Economic News,” as of the market close on October 10th, the Shanghai Composite Index rose by 1.32% to surpass 3300 points, while the Shenzhen Component Index fell by 0.82% and the ChiNext Index dropped by 2.95%. Stocks in sectors like finance, real estate, and semiconductors led the decline, with nearly 2300 falling shares across Shanghai, Shenzhen, and Beijing markets.
In recent days, the A-share market has continued to rise with the support of the authorities. On October 8th, A-shares suddenly experienced turbulence, followed by a significant tumble on the 9th, with over 5000 stocks plummeting and more than 3000 stocks dropping by over 9%, resulting in 854 companies’ stock prices hitting the limit down.
Currently, A-shares have become a hot topic of public attention for several consecutive days. Public opinion points out that in the reality of the Chinese stock market, individual small investors are always the ones being exploited, and quitting while ahead is their ultimate destination.
On October 10th, the “Zhuzhou Evening News” reported a case of a man suffering massive losses from stock trading. The report mentioned that on October 8th around 2 p.m., a man named Awei, after working in a furniture factory in Guangzhou for 6 hours, checked his stock account during a short break, only to find a loss of 197 yuan.
Awei was not the account holder of this account, but rather a relative, making him the operator of the account. However, the money in the account was contributed by Awei himself. In December 2021, due to various reasons, his stock account was suspended, causing him to now only be able to “operate” through someone else’s account.
On October 2nd, after returning to his hometown in Zhuzhou, Hunan from Guangdong by train, Awei deposited another 15,600 yuan into the stock account through his relative.
With the downturn in the home furnishing industry, Awei’s income decreased from over 7,000 yuan to around 4,000 yuan annually. After deducting living expenses, rent, children’s tuition, and other costs, Awei had saved only 16,000 yuan this year. Leaving aside 400 yuan, he placed his entire savings into the stock market. Despite repeated advice from his relatives, Awei proceeded without hesitation.
At the beginning of 2022, the total funds in this account were 50,000 yuan. Before Awei invested 15,600 yuan, the account was left with only 336 yuan. This means that in nearly two years, Awei’s loss rate from stock trading was as high as 99.3%, with a previous loss of 550,000 yuan.
Awei, a resident of Lukou District, once worked in the decorating industry in the urban area, essentially working as a combination of a “decorative task force leader + subcontractor.” Several years ago, during the peak of the real estate market, it was common for skilled workers like him to earn over 100,000 yuan annually.
In 2016, Awei entered the stock market by chance. Believing he had a knack for stock trading, he initially enjoyed success. However, from 2016 to 2021, he accumulated losses of 550,000 yuan in stock trading, even selling his 110-square-meter property in Tianyuan District for over 300,000 yuan. Since 2022, Awei’s investment situation has not improved. Up until the recent National Day holiday, he continued to experience losses.
Awei remarked, “The money from selling the house, bank loans amounting to hundreds of thousands of yuan, all went into the stock market and nearly all was lost.” He cautioned, “If you haven’t traded stocks before, it’s best not to enter the market.” Awei noticed that in the days leading up to the National Day holiday, over 70% of new investors opening accounts were born after the year 2000 or in the 1990s.
Regarding this, Awei expressed his concerns, stating that stock trading is not as easy as imagined, and making money in the market is a very challenging feat. He emphasized the importance for investors to remember that “the stock market is risky, and investment requires caution.”