Is Chinese investors' trust in the government running out? | Singapore Informer

SHANGHAI — In the small cafe he runs on a Shanghai side street, Wu Liang is doing what he always does when there are no customers – sitting at the corner table, looking at his laptop, watching the share prices on the Shanghai and Shenzhen exchanges. The difference today is that he has a smile on his face: after falling for almost a month and losing a third of its value, the Shanghai market is up, recovering almost all of its losses from the day before.

“I think the market’s going to be OK,” Wu says with a grin. “I’ve still made a bit of money over the past few months. And now the government’s got all these policies to help us – so I’m planning to hold on to my shares.”

Wu is in his 40s, but only began playing the market a few months ago – catching the boom that saw the main Shanghai Composite Index rocket from just over two thousand points little more than a year ago, to more than 5000 on June 12 this year. He’s one of tens of millions of new investors who poured into the market as it climbed in recent months – in May alone 12 million new accounts were opened.

© Provided by IBT US An investor monitors share prices inside a brokerage firm during morning trading in Hong Kong. / Reuters
                

“Everyone who comes to the cafe has been talking about the market recently,” said Wu. One Shanghai newspaper this week described China’s stock market investors as behaving as though they were part of a mass movement – as soon as the market begins to boom, “every office, every card and mahjong room, every dining table, even some…

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