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Chinese interest in savings dwindles with soaring stocks

Chinese interest  in savings dwindles with soaring stocks

A soaring stock market has led to record-low interest among Chinese savers for putting their money in bank accounts, state media reported yesterday.
A new central bank survey showed an all-time high of 30.7 percent of the public saw stocks as their most important financial asset in the first quarter, up from 19 percent in the fourth quarter of 2006, the Xinhua news agency said.
By contrast, 59.4 percent of the public regarded bank deposits as more important, the lowest level on record, according to the survey, which was based on data collected from 20,000 respondents.
The results of the survey were released as a senior securities market regulator warned against risks in the stock market. "There are risks in the stock market and you should think carefully before entering," Fan Fuchun, vice chairman of the China Securities Regulatory Commission, was quoted as saying by the China Daily website.
He urged investors not to jump into the equity market blindly or make investment decisions based on rumours, according to the paper.
Share prices on the key Shanghai index are up well over 200 percent since January last year, while on the Shenzhen A-share market index, prices are up more than 280 percent.
In the first three months of the year punters in China opened 4.79 million new accounts, a 56-percent increase from the 3.08 million in the whole of 2006, the official Xinhua news agency reported, citing government statistics.

Updated : 2021-05-19 08:57 GMT+08:00