Millions of new investors piled into mainland Chinese stock markets in 2020
More Chinese investors are piling into the local stock market.
In December, the mainland stock market recorded 1.62 million new investors – double the 809,300 reported a year ago, according to China Securities Depository and Clearing. The organization handles trades for the Shanghai and Shenzhen stock exchanges.
For all of 2020, new investors increased by 18.02 million to 177.77 million, the data showed. That’s about 1.5 million new accounts a month.
The surge of interest comes as many people around the world turned to stock trading while being stuck at home due to the coronavirus pandemic.
The new investor accounts in China come as mainland stocks soared last year, with some becoming the best performers in the world.
Investors also had more Chinese companies to choose from as new listings flooded the market.
Mainland China and Hong Kong accounted for 40% of the world’s initial public offerings last year, according to Ernst & Young.
The Shanghai Stock Exchange, with its main board and Star market, ranked first in the world with 233 IPOs, the study said, adding that Shenzhen came in third, just after the Nasdaq in New York.
Chinese stocks climb in 2021
Chinese interest in local stocks has remained high so far this year, with trading volume for the mainland-listed A-shares surpassing 1 billion yuan ($154.32 million) on 11 out of the first 13 trading days of 2021, Wind data showed. A-shares are yuan-denominated stocks of Chinese companies listed in mainland exchanges in Shenzhen or Shanghai.
Chinese markets have seen strong gains this year.