China market crash’s huge effect on the world, millions of Chinese investors

World Today

A Chinese investor monitors stock prices at at a brokerage house in Beijing, Monday, Aug. 24, 2015. Stocks tumbled across Asia on Monday as investors shaken by the sell-off last week on Wall Street unloaded shares in practically every sector. (AP Photo/Mark Schiefelbein)

The losses at the stock market is affecting millions of households in China.

China’s investment structure significantly differs from the U.S., where most trading is done through institutions CCTV’s Roee Ruttenberg explains.

Stock market crash affecting Chinese households

The losses at the stock market is affecting millions of households in China. China’s investment structure significantly differs from the US, where most trading is done through institutions CCTV's Roee Ruttenberg explains.

  • Two-thirds of China’s individual accounts make-up 5 percent of China’s market value.
  • 10 million accounts have less than 10,000 RMB ($1,600)
  • 23 million accounts have between 10,000 RMB And 100,000 RMB. ($1,600-$16,000)
  • Individual investors are untrained and have little diversification in their portfolios.
  • 9 million new accounts were opened in 2014, while 38 million new accounts were opened in the first half of 2015.
  • China’s individual investors are urging the government to get involved
  • IMF urging China to naturally absorb market shocks
  • In July, 20 million Chinese individual accounts were closed.
  • China’s market woes do not necessarily reflect the state of China’s economy