Survey: Most individual securities investors play small

By Dai Yan (
Updated: 2007-08-03 16:08

About 70 percent of individual investors own investments of less than 500,000 yuan (US$66,024) in securities, according to a survey by the Securities Association of China and China Securities Investors Protection Fund Co Ltd.

The survey was carried out from June 11 to July 5 among 2,880 individual and institutional investors in 73 stock exchange outlets in 17 cities including Beijing, Shanghai, and Guangzhou.

The survey shows 25 percent of the surveyed individual investors set aside less than 100,000 yuan for investment, and some 70 percent invest over one third of their total household financial assets in the stock market. About 13.4 percent of investors use all of their financial assets to buy stocks.

According to the survey, experienced individual stock investors source 8.3 percent of their capital from borrowed money or bank loans, and the figure is 10.81 percent for relatively new investors, those who started stock investment in 2006 or 2007.

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Many individual investors failed to practice their investment concept. Over 60 percent of individual investors say they pursue rational investment and stable return, and can accept a maximum 20-percent loss, while over 50 percent hold stocks only for three months or less. Average stock-holding term of the surveyed is 116 days.

About 60 percent of the individual and institutional investors respectively believe the bullish stock market would last for at least one year. Altogether 54 percent of individual investors have no plan to raise capital this year, and 17 percent will invest more. Individual investors expecting a return of between 10 and 50 percent account for 60 percent of the total.

Fifty percent of individual investors are between the ages of 33-54, according to the survey. Unemployed, retired and freelance workers account for 35.5 percent, and company employees and technicians 31.1 percent. About 60 percent have bachelor's degree or above, and 70 percent earn less than 5,000 yuan per month.

In terms of experience, 52 percent of individual investors began investing before 2000, while 23 percent first invested in 2006 or 2007.

About 80 percent of individual investors say they are aware of risks in fund investment. Nearly 60 percent intend to hold funds for the medium and long term, and over 40 percent will keep holding even when fund value slumps. Nearly 60 percent choose stock funds. Sixty percent of individual investors profited over 30 percent from funds in 2006.

According to the survey, 86.9 percent of the institutional investors think it urgent for the financial market to conduct product innovations.

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