Admitting that his portfolio had lost 20 per cent of its value since April 23 when the Ministry of Finance slashed the tax on stock trading transactions, Mr Zhang said he still believed that the 3,000-point level of the Shanghai Composite Index was rock-bottom.

The index yesterday plunged 7.73 per cent to 3,072.33 points.

By announcing the stamp duty cut in April, Beijing sent a clear signal to the market that it was putting a floor under the stock market to prevent the key indicator from crashing below the key 3,000-point level.

When Zhou Zhengrong, a millionaire investor who bet 4 million yuan (HK$4.5 million) in the A-share market last year, tallied his account portfolio yesterday, he found half of its value had been wiped out by this year's 41.6 per cent plunge of the key index.

'Sometimes, less is more,' he said. 'Everybody is saying that a turnaround is shaping up. Who cares whether the market declines further tomorrow or the day after?'

Indeed, the two investors are typical of millions of mainland stock investors who claim they are becoming hardened after experiencing a series of roller-coaster rides in the market in the past decade.

A Beijing-based fund manager noted that individual investors were always the victims of volatility in the stock market.

'They all believe they have Warren Buffett-style wizardry,' he said. 'What fools. There's no way that small investors can win the gamble against multibillion-yuan funds.'

However, many retail investors remain inspired by successful examples and believe they, too, will strike it rich.

Investor Robert Chen said one of his friends made a killing on stocks last year, with a 23-fold return, when the Shanghai index soared 97 per cent.

'You know, he was attracted to the market by me,' Mr Chen said. 'But this guy was lucky because he cashed out when the market peaked.

'For me, I will cash out when a strong rebound occurs. I'm looking forward to next year.'