A prominent Chinese influencer has called on his fellow citizens to invest in the country’s stocks as property woes persist, at a time when the world’s No. 2 economy is mired in a deepening crisis of confidence.
(Bloomberg) — A prominent Chinese influencer has called on his fellow citizens to invest in the country’s stocks as property woes persist, at a time when the world’s No. 2 economy is mired in a deepening crisis of confidence.
“Given low expectations for a further massive expansion in the housing market, many folks don’t know where to put their money, except for bank deposits,” Hu Xijin, former editor-in-chief of the hardline tabloid Global Times, wrote in a post on his Weibo social media account Friday. “The stock market should be a key destination for funds.”
The size of China’s stock market, though already the world’s second largest, is less than 30% of that of its US counterpart, wrote Hu, who has 24.8 million followers on the Twitter-like platform. “There is clearly room for expansion.”
Chinese stocks have languished in recent months and become among the world’s worst performers, after an initial reopening rally soon gave in to a faltering economic recovery. In the latest sign of authorities’ unease with eroding market confidence, a state-owned newspaper issued a rare rebuttal of Goldman Sachs Group Inc. research after the Wall Street bank recommended selling shares of Chinese lenders.
Hu announced last week that he has opened a local stock trading account with an initial investment of 100,000 yuan ($13,828), which caused a stir among netizens and investors at that time.
“It’s time for China to more seriously build the stock market as an investment venue that matches its economic weight,” Hu wrote. “Perhaps we need to rebuild the stock investment culture with the participation of the government, enterprises, investment institutions and ordinary citizens.”
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