China’s stock market roller coaster is particularly stomach-churning for a small village in northwestern Shaanxi province where one in eight families is a retail investor.
The villagers had seen the best of the stock market for the better part of a year but after the Shanghai Composite Index crashed below 3,500 points recently, they barely managed to hold on to their shirts.
Now, most of the investors in Nanliu village outside Xingping city have cashed out but they’re smarting from heavy losses.
Some had sold their farm trucks and put the money in the stock market. Others had bet their life savings, according to Ming Pao Daily.
One villager has lost 200,000 yuan (US$32,200).
Even 65-year-old Nan Xinglao, the most experienced investor, has had his fingers burned. He has sold all his stocks and lost all his gains from the bull run.
Since the nosedive, which began in June, the village trading hall has been deserted, except for a few souls cooling their heels while waiting for things to improve.
One of them is Liu Jianan, christened “Sage of Omaha” by his neighbors for his clever investing.
Liu said investing in stocks is a form of support for the country’s economic development.
“Even if the market falls, we shouldn’t dump stocks and add to the country’s troubles,” he said.
“We should trust the country and the ability of the Chinese people, so we should keep buying stocks.”
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