The Casino: A Look At Retail Investors In China

In April, a record number of Chinese investors opened accounts with brokers around the country to participate in the country’s stock market rally. According to China Securities Depository and Clearing Company, 3.3 million people in China opened new brokerage accounts to buy shares during the third week of April, a record for the former communist nation. A few weeks later, on June 12, the market peaked and by the end of the month, China’s key stock indicator, the Shanghai Composite Index, had fallen 21.5% from its peak. But, in a move Ben Graham would be proud of, retail investors have continued to…