From Bloomberg:
Aspiration and envy are key emotions driving China’s stocks boom as investors ignore warnings of a growing bubble to pursue quick riches and gain respect from friends and neighbors. Rapid recoveries from two government-triggered sell-offs this year have deepened investors’ belief that the market is immune to a crash.Such is China’s investing frenzy that an average of 300,000 stock-trading accounts have been opened every day since April, according to China Securities Depository & Clearing Corp. Trading by individual investors accounts for about 60 percent of market volume, estimates the Shanghai-based brokerage Guotai Junan Securities Co. In the U.S., individuals account for only 5 percent of trading as institutional investors dominate. [Full Text]
