-
Important news
-
News
-
Shenzhen
-
China
-
World
-
Opinion
-
Sports
-
Kaleidoscope
-
Photos
-
Business
-
Markets
-
Business/Markets
-
World Economy
-
Speak Shenzhen
-
Health
-
Leisure
-
Culture
-
Travel
-
Entertainment
-
Digital Paper
-
In-Depth
-
Weekend
-
Newsmaker
-
Lifestyle
-
Diversions
-
Movies
-
Hotels and Food
-
Special Report
-
Yes Teens!
-
News Picks
-
Tech and Science
-
Glamour
-
Campus
-
Budding Writers
-
Fun
-
Qianhai
-
Advertorial
-
CHTF Special
-
Futian Today
在线翻译:
szdaily -> Markets -> 
Retail investors hit as small-cap stocks slump
    2021-02-08  08:53    Shenzhen Daily

A SLUMP in Chinese small-cap stocks has left many retail investors nursing losses despite strength in the broader market, as institutional investors flock to blue-chip names.

The CSI1000 index, mainly comprising firms with a market value of less than 20 billion yuan (US$3.09 billion), dropped 1.99 percent Friday to an eight-month low, bringing its losses for the year to more than 8 percent.

China’s CSI300 blue-chip index, in contrast, is up more than 5 percent for the year after a 27 percent rise in 2020.

“This is a ‘stock crash’ bull run,” said Eric, a retail investor in the central province of Henan, who declined to give his last name.

The phrase, which refers to a small group of large companies gaining while many others fall, has been trending on China’s Weibo social media platform in recent days, as the gap between haves and have-nots has widened.

China’s top liquor maker and biggest listed company Kweichow Moutai, popular with asset managers, rose 1.89 percent to a new record high Friday before easing its earlier gain to close the day down 0.34 percent, taking its market value to 2.6 trillion yuan.

The disparity between small and large firms has become even starker following registration-based IPO reforms on Shanghai’s STAR Market and Shenzhen’s ChiNext last year, which have increased equity supply and pressured valuations.

Some retail investors hoping to hitch a ride on the broader bull run have been especially hard hit after they continued to place bets on small firms.

“My 70 percent gain in 2020 has dwindled to only 15 percent,” said Muzi, an investor who has been posting about the small-cap slump on Weibo. She said she has lost 15,000 yuan, or three months’ salary, since November.

Institutional investors have taken a different approach. Hong Yanhua, chairman of Zhejiang Murong Asset Management, said he was no longer interested in small-cap companies, seeing large companies as safer bets.

“Nobody wants shares of small firms now, as it’s really difficult to trade them,” he said.(SD-Agencies)

深圳报业集团版权所有, 未经授权禁止复制; Copyright 2010-2020, All Rights Reserved.
Shenzhen Daily E-mail:szdaily@126.com