College students attempt to cash in on stocks
股市創新高吸引大學生

China’s stock market hit a seven-year high once again on Friday, with the Shanghai Composite Index closing at 5166.35 points. Despite occasional volatility, this year alone, there has been a rise of more than 50 percent on the market. As the recent bull run continues, millions of new retail investors are pouring into the market. Among them, many are college students.

It’s nearly the end of his first year in university and 19-year-old civil engineering student Dai Jinkun is beginning to feel the pressure of the upcoming final exams. But unlike his peers, he has another matter to worry about too. How the stocks in his portfolio are performing.

Dai Jinkun said:"I think I’m still an amateur. But I’m a lucky man. So I have earned some money."

So far Jinkun has made over 2 hundred Yuan with the special fund of 5,000 yuan he got from his parents. That’s not bad considering he’s been in the market only for a short time.

He also said:"I began to buy stocks 3 to 4 months ago. I did that because my parents told me, I need to learn some basics about the stock market. But they don’t expect me to live solely on this."

Stories of success continue to lure new investors in. From May the 25th to the 29th alone, over 4.4 million new trading accounts were opened, according to the China Securities Depository and Clearing Corporation. But with most newcomers having little-to-no financial background, there are concerns about whether they’re really ready to plunge into the market.

In Jinkun's class there are still several other students investing in stocks. According to an online survey targeted at college students by Xinhua News Agency, about 30% of those surveyed are betting on stocks right now. Some of them are even using their living expense to make bets. Jinkun's Physics teacher Li Shaoxin feels these students need to be extra cautious.

"I don’t want to encourage college students to bet on stocks for two reasons. One is, that their main focus right now should be studying. If they buy stocks then they’ll have to spend lots of time with it, and as a result their grades will be affected. The second reason is that the stock market is risky. Once there is a plunge in the market, I’m not sure these students and their families are capable of withstanding the loss," said Li Shaoxin, Physics Professor of South China University of Technology.

Jinkun’s mother is a veteran in the stock market, so he’s very well informed about the potential risk. So the moment China’s stock market index broke through 5,000, he stopped buying. But for thousands of others pouring into the market, financial education and risk awareness need to be strengthened.

Wang Renzeng, Executive Dean of School Of Economics & Commerce, SCUT said:"It’s irrational to follow the trend, fly blind into the market, become impulsive and believe in all the rags to riches stories. Everyone should learn some basics about stocks and investment."

Financial literacy among ordinary Chinese is very limited since the country only opened its first stock exchange in Shanghai in 1990. Even now, there are many small investors relying on rumors or tips from friends in the hope of cashing in. But for college students, buying stocks can always be a way of learning and feeling the pulse of the Chinese economy, though at a cost.