Millions of Chinese investors rushed into July's stock market rally

[SHANGHAI] China reported the largest number of new stock investors in five years in July, as millions of individuals rushed into a buoyant share market, boosting trading turnover and brokerage earnings.

The number of new investors in mainland Chinese shares totaled 2.4 million in July, the most since June 2015, the peak of China's massive stock bubble that later burst, according to official Securities Times.

It represents a 60 per cent jump from a month earlier and a year-on-year increase of 124 per cent, according to the China Securities Depository and Clearing Corp (CSDC).

Investors sought high returns in a stock market that jumped over 10 per cent in July, helping boost turnover. Stamp duty income from securities trading rose 35.3 per cent year-on-year during the first seven months, compared with a 8.7 per cent fall in fiscal revenues as coronavirus hit the economy, official data shows.

Hectic trading benefits brokerages. Over 25 listed brokerages reported a profit jump of over 50 per cent in July, Securities Times reported. 

REUTERS

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