After the end of the week-long National Day holiday in mainland China, the stock market, which had surged crazily before the holiday and even been touted as a bull market, suffered a massive drop in the first two days of trading after the holiday. Thousands of new investors were trapped, losing their hard-earned savings in just two days. Many have taken to the internet to lament their losses, with their savings accumulated over many years wiped out in an instant, leaving them feeling devastated and helpless. People expressed anger, condemning the artificially created bull market as a disaster for the country and the people, a scam with an ugly face.
Following the long holiday in China, on October 9th and 11th, the three major indices in mainland China collectively fell. On the 11th, the Shanghai Composite Index dropped by 2.55%, falling below the 3300-point mark; the Shenzhen Component Index fell by nearly 4%, and the ChiNext Index dropped by 5%. According to reports from Sina Finance in mainland China, all three major indices of Chinese stocks opened lower and continued to decline, with over 4800 stocks experiencing price drops. On the 10th, the three major indices showed divergent trends, barely holding above the 3300-point level after fluctuations.
Previously, on September 24th, the Chinese authorities implemented stimulus measures for the stock and real estate markets that exceeded expectations, and the Communist Party’s Politburo meeting endorsed these actions. This led to a frenzy in the Chinese stock market, with occasional bull market promotions, and it was estimated that about 3 million new investors opened accounts and entered the market.
However, at the same time, there appeared a significant outflow of funds from the Shanghai and Shenzhen markets, with a net outflow of 169.8 billion yuan on the 8th. Many retail investors and new investors found themselves trapped, with many sharing their dismal situations on social media, warning others not to fall for the same traps.
A blogger from Shanghai lamented on the 9th that it was his first time trading stocks, going all in, but ended up losing all the money he had accumulated over three years of financial planning in just one day. Feeling defeated, he reflected, “Earning money beyond what you perceive is truly impossible!”
Meanwhile, in Xi’an, a hairdresser named Mr. Zhang revealed how many of his friends, including those lacking investment experience, were discussing A-shares. He shared a heartbreaking story of a close friend who had diligently saved up three million yuan over more than a decade, only to lose it overnight in the stock market. Facing debts and a failing business, the friend’s marriage was also on the verge of collapse, showcasing the devastating impact of the market turmoil.
The article continued to highlight various personal stories and experiences of individuals who had suffered significant losses in the recent stock market turmoil, ranging from new and inexperienced investors to seasoned ones, and even pregnant women who decided to enter the market, only to face substantial financial setbacks.
As critiques and discussions unfolded in the comment sections, voices of frustration and anger could be observed, with many expressing disbelief at the manipulative and destructive nature of the stock market’s recent state. The sentiment of being cheated, misled, and abandoned by the system resonated deeply among those affected, reflecting a broader societal discontent with the financial schemes and market manipulations that had ensnared them.
Overall, the impact of the recent stock market downturn in China has left a trail of shattered dreams, ruined finances, and emotional distress among a wide range of investors, prompting a deeper reflection on the risks and realities of participating in such volatile markets. The stories shared and the voices raised in response to these events serve as a stark reminder of the challenges and pitfalls individuals face in seeking their financial fortunes in the ever-changing landscape of the stock market.