A RAGING bear market on the mainland is showing few signs of abating and investors bailed out of equities last week in search of higher-yielding bonds after another sharp fall in share prices.
The Shanghai and Shenzhen A-share markets - which are only open to local investors - have plunged in recent weeks, fuelling speculation the Government will have to take measures to restore confidence.
The A-share markets both shed about 10 per cent of their value in midweek before stabilising. Two weeks ago the markets lost about 15 per cent in value before a small rebound recovered about half the losses.
The Shanghai index is now down about 65 per cent from its peak in February last year, while the losses in Shenzhen have been similar.
Only two years ago, millions of investors were queueing up for a chance to take part in the newly opened share market in the belief it was a sure-fire way to make money.
''People are getting burned and are feeling very frustrated. Rather than waiting and seeing whether they can recover their losses, they are pulling out and looking at more secure methods of investment,'' said one head of China research in Hong Kong.
