After stimulus, China tries to turn stock market frenzy into recovery

Oct. 2, 2024 - The Washington Post

China’s legions of casual traders are stoked — and a little scared — to see what happens next in the country’s massive stock market rally. China’s equity markets are notoriously fickle, in part because they are dominated by casual retail investors, who account for about two-thirds of trading activity.

“When I saw the big rise, I sold the next day, fearing that it would fall immediately,” the 36-year-old said. But there has not yet been a similar upturn in sales across smaller Chinese cities hit worst by the slump.

Amid the uncertainty, investment advisers are urging inexperienced individual investors to be cautious not to borrow too much money to enter the stock market...