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China Investors’ New Nickname Shows Frustration With Market Rout

Jul 9, 2024 | blog

(Bloomberg) — Some of China’s 200 million mom-and-pop traders have given themselves a sarcastic new nickname in a present of frustration with the nation’s failure to prop up the inventory market.

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Lamenting the dearth of returns, they name themselves “financial consumers.” Chinese regulators used the time period on June 28 when it vowed to guard the rights of those that purchase monetary merchandise, however pessimistic traders adopted the saying to specific their disappointment as a rally in Chinese equities that started earlier this yr fizzled out. Related searches have spiked since late final month on social media websites together with WeChat.

“We’re not investors. We have a new identity called consumer,” stated an funding commentator in a video favored 14,000 occasions on Douyin. “Don’t think about making a profit. You should think of yourself as a consumer spending money.”

The moniker encapsulates the sense of pessimism as China’s benchmark index for home shares erased this yr’s positive factors forward of a key coverage assembly subsequent week.

Bearish indicators proceed to mount forward of the Communist Party’s third plenum, a gathering carefully watched by traders for main coverage shifts. Mainland’s benchmark CSI 300 suffered a seventh week of losses on Friday, its longest dropping run since 2012. In Hong Kong, the Hang Seng China Enterprises Index touched the bottom since April earlier than paring losses on Tuesday.

“Let’s get our position right and do a good job as a financial consumer,” one individual wrote on China’s microblogging platform Weibo on Monday. “As long as we support the national team to make money, we are like supporting the country.”

“National team” is a casual identify for a bunch of exchange-traded funds favored by China’s sovereign wealth fund to prop up the inventory market throughout a hunch.

Some social media customers stated the time period provides to an older, self-deprecating identify “chives,” a plant that retains popping again up after being harvested, a metaphor for exploited small traders.

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