As China’s economy continues to decline in recent years, the stock market has been on a downward trend, with real estate giants repeatedly defaulting, leading to a large number of investors and speculators burdened with loans being trapped and suffering significant losses.
“Zhejiang News” reported on October 23 that both the stock market and real estate have become hot topics for discussion in recent times. The state media has been promoting a bullish market sentiment, prompting some young investors born in the 1990s and 2000s to eagerly enter the market, while older investors are cautiously preparing for battle or withdrawal.
The report mentioned a veteran investor named Ding Yue, who has been trading stocks since 2005 but recently suffered significant losses. Ding Yue stated, “I added some leverage recently, and as a result, lost 1 million yuan in just one day. Because of this, I had a big argument with my husband.”
Ding Yue explained that she had spent millions of yuan a few years ago to buy a house, and her biggest wish now is for her stocks to recover so she can pay off the mortgage early.
Ding Yue is just one of many investors experiencing losses. In early September, the A-share market soared under official stimulus, leading many investors to pour all their savings into stocks, even resorting to heavy borrowing. However, on October 9, the stock market suffered a sharp decline, with over 5000 stocks falling, 854 companies hitting the limit down, and the market filled with lamentations.
Compared to the volatile stock market, veteran investor Yu Jing believes that the risk factor in the real estate market is somewhat lower.
Yu Jing said, “I started trading stocks in 2012 and around the same time bought a second house in Hangzhou, marking the beginning of my real estate investment. In my opinion, while both markets are experiencing declines, stock prices plummet too quickly, whereas even if property prices drop, there is always time to respond gracefully.”
On the other hand, Qiang, whose real estate investment failed, pinned his hopes on the stock market. In 2021, Qiang hit a profitable deal with a property, expecting to earn a few million yuan by selling it after the handover at the time.
However, as the second-hand housing market continued to decline, when the property was handed over this year, Qiang struggled to find buyers through agents for six months, all of whom tried to slash prices during negotiations.
Since Qiang had borrowed money to invest in the property and could not live in it, he reluctantly sold the property he had high hopes for, at a price 10,000 yuan below the purchase price. When factoring in interest over the past few years and tax costs, his net loss amounted to about 800,000 yuan.