China Bull - The greatest bull of the decade
- Thread starter ETFei
- Start date
The rate of new account opening is increasing exponentially .
Number of New A-share Account Opened
2005: 850k
2006: 3.08 millions
2007 Jan to Mar: 5 million
2007 April: Average 1 million weekly
2007 May: Expect the rate to rise above 2 million weekly
China has 1.3 billion populations, only 90 million have share trading accounts. As long as record high number of new entrant keep buying the stocks, the share price will not have any chance to come down.
Unlike USA negative saving rate, China still have huge amount of savings in the banks. There is simply too much liquidity in the banks. 3 Month Shibor 2.95% is lower than Mar CPI 3.3%. People start to realize that their savings account interest rate is too low and begin to transfer their money to stocks market. Even primary school student use their parents account to trade, street cleaner join the long queue to open account too, the party is just too hot to miss.
Number of New A-share Account Opened
2005: 850k
2006: 3.08 millions
2007 Jan to Mar: 5 million
2007 April: Average 1 million weekly
2007 May: Expect the rate to rise above 2 million weekly
China has 1.3 billion populations, only 90 million have share trading accounts. As long as record high number of new entrant keep buying the stocks, the share price will not have any chance to come down.
Unlike USA negative saving rate, China still have huge amount of savings in the banks. There is simply too much liquidity in the banks. 3 Month Shibor 2.95% is lower than Mar CPI 3.3%. People start to realize that their savings account interest rate is too low and begin to transfer their money to stocks market. Even primary school student use their parents account to trade, street cleaner join the long queue to open account too, the party is just too hot to miss.
The chinese love to trade and gamble
Doesn't anyone understand that China isn't lke Detroit, St. Louis, or even New Orleans?
You can't just say that because the population is 1.3 billion and there are only so many accounts open there are limitless bounds for more to be open...that's fucking mentally retarded. You're using apples to measure oranges.
True, the Chinese historically have a penchant for gambling and might have some savings.
You're not even looking at age dispersion, let alone wealth dispersion:
http://www.census.gov/cgi-bin/ipc/idbpyrs.pl?cty=CH&out=s&ymax=300
You can't just say that because the population is 1.3 billion and there are only so many accounts open there are limitless bounds for more to be open...that's fucking mentally retarded. You're using apples to measure oranges.
True, the Chinese historically have a penchant for gambling and might have some savings.
You're not even looking at age dispersion, let alone wealth dispersion:
http://www.census.gov/cgi-bin/ipc/idbpyrs.pl?cty=CH&out=s&ymax=300
To compare China with Detroit or any city in US is simply the most silly idea. Shanghai growth rate alone can even exceed the total growth rate of New York + Chicago + Los Angeles. China has around 700 million people age between 20-60, we just need 20% (around 150 million or half of US population) to be rich enough to drive the stock market. Currently, only 91 million has account. You can see that the new account open party still can last for a while.
US market is already mature with limited new entrant. Well Shanghai market is still young and energetic which has weekly 1 million (still increasing) new entrant. Assume they just invest 10k(of course they can afford much more than 10k), everyweek Shanghai stocks market will have 10 billion fresh funds from retail players chasing limited supply of shares. We don't need to look at age/wealth dispersion to know that. Only the mentally retarded dont understand this.
ergh....and again you didn't get it. I tried. 