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Stock market braces for more gloom

By Jin Jing (China Daily)
Updated: 2008-07-02 07:14

When Chinese investors pumped their savings to fuel a feverish stock market last year, regardless of repeated warnings by the authorities to exercise prudence, few would have thought that their market assets would plummet by nearly 50 percent in half a year.

A man stands in front of a screen displaying stock information at a bourse in Wuhan, capital of Hubei province, yesterday. The Shanghai Composite Index closed at 2651.61 points on Tuesday, reaching a 17-month low. [China Daily]

Like millions of investors who were burnt by the plunge, Jin Jieren, a 26-year-old office worker in Shanghai, saw her assets shrink by 40 percent.

Jin had entered the stock market with 200,000 yuan ($29,200) one and a half years ago, following the market's takeoff from the end of 2005.

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After putting an additional 50,000 yuan into the market when the stock index fell below 4500 points this year, Jin was shocked to see the index spiral downwards.

"The market has continued to fall without any sign of a real rebound," Jin said.

"But I am still optimistic and hopeful of a recovery, as China's economy is expected to tide over the difficult times."

While others have shared Jin's optimism, many are said to be worried about grim corporate earnings stemming from gloom over global economic growth, rising inflation and natural disasters in the country.

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