China’s Bear Market Attracts Locals Seeking Safety

Discussion in 'Wall St. News' started by ASusilovic, May 13, 2010.

  1. May 13 (Bloomberg) -- Chinese equities slumped into the second bear market in nine months this week. Pan Weiting says there’s no better place to put her money than in stocks.

    Pan shelved plans to buy an apartment after real estate prices jumped the most on record and the government banned loans for third homes to cool the economy. Interest on the 400,000 yuan ($59,000) she has in her bank account is being eaten away by rising inflation, and the country’s regulations limit her investment choices to property or domestic equities.

    “The stock market is the best choice for the moment,” said Pan, a 27-year-old Shanghai accountant. “Even the bank staff advised me against depositing more money.”

    "Even the bank staff advised me against depositing more money." I have to tripple my Chinese bank shorts...