The number of new accounts registered with mainland stock exchanges fell by more than a fifth last week as retail investors baulked at the volatile market amid a correction.
According to China Securities Depository and Clearing, 436 accounts were created at the Shanghai bourse and 396 at the Shenzhen exchange last week - about 23 per cent fewer than the week before.
The drop in new accounts was in line with a sharp fall in the A-share market that left thousands of retail investors licking their wounds despite the general expectation of a strong bull run amid an inflow of hot money.
In the week to November 12, more than 560,000 accounts were opened.
'Although many investors still opened new accounts, the week-on-week drop was a clear sign that the buying interest has weakened,' West China Securities trader Wei Wei said. 'It's safe to say that the market won't regain strength any time soon.'
The two exchanges saw market capitalisation shrink two trillion yuan (HK$2.33 trillion) since November 12, when heavy profit-taking knocked the Shanghai Composite Index down 5.16 per cent. Between September 30 and November 11, the benchmark indicator jumped 20.6 per cent, buoyed by an influx of speculative capital owing to a strengthening yuan.
