The Hushen Index, reflecting China’s Shanghai and Shenzhen stock markets, is down nearly 70 percent from its peak last November. The Hushen Class A Shares has lost 2,200 billion yuan (US$332 billion) in market value, with an average loss of 91.3 billion yuan ($14 billion) per day. The 50 million shareholders in China have lost an average of 380,000 yuan ($56,000) per person.
The People’s Bank of China recently lowered the interest rate, causing the Shanghai Stock Index to rebound more than two percent in Shanghai and almost two percent in Shenzhen on October 30, according to the Guangzhou Daily. The small rebound was both followed by a similar decrease in both markets the next day.
The Shanghai Stock Index has dropped 70 percent from last year’s 6124 points to 1664 points, causing many holders to lose all the money they previously made.
On November 6, 2007, the China National Petroleum Corporation went public, causing the total stock volume in both stock markets to peak at 3,362 billion yuan ($492 billion). Meanwhile, the Class A Shares market value had lost 2,200 billion yuan ($332 billion) to date, averaging a loss of 91.3 billion yuan ($14 billion) per day for the past 241 stock exchange days.
According to the article, with about 57.5 million shareholders in the Class A Shares market, each shareholder has lost 380,000 yuan ($56,000) during the past year and 1,577 yuan every day ($230).
Huang, a Chinese shareholder, said that he had at one point earned more than 300,000 yuan ($44,000) and reached a total balance of 500,000 yuan ($73,000). However, a year later, he now has only 180,000 yuan ($26,000) in his account. There are other shareholders who have lost over 600,000 yuan ($88,000).
