From 2006, the index of Shanghai stock market rocketed from 2600 to 6000, and the stock price of many companies increased several-fold, and even dozens-fold. This has attracted thousands of Chinese to rush into stock market one after another. Some relatives and friends of my family have followed the suit as well.
Why so many people swarmed into stock market? The reasons are various. Firstly, the benefit has huge power:if you buy at the price of 5 a share and sell at 8 two months later,what a big money! Secondly, people are extraordinarily confident and optimistic about Chinese economy, so are they about the stock market, an important showcase of economic development. Thirdly, people know more about investment and they want to put their knowledge into practice and try their fortune.
With the stock hot, many people withdraw money from their bank accounts and invest in the stock market, neglecting their study, jobs and even family life. However, bubbles appear in some industries, which make quite a lot of people go bankrupt. Therefore, it's really urgent to cultivate a rational view about investment in the stockmarket.
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