Seasoned investors in mainland China enjoy market's 'bumpy ride'
Harsh lessons learned during A-share volatility between 2007 to 2008 now being put to good use as market-watchers await a 'high' to sell
Seasoned retail investors like Li Dong have little time for people warning about the volatility of the stock market. For Li the name of the game is to get smarter - and be a little less greedy - while trying to profit from a bull run.
"I understand the market and it is pointless people trying to teach me what the risks are any more," he said. "Indeed, we're in the market to make amends for our past mistakes and we've already learned a lot from our own bitter experiences."
Li, 38, a white-collar equity investor who spent 500,000 yuan betting on an upsurge in the value of A shares since late 2014, said he had grown weary about all the warnings about market bubbles.
The graphic designer at a state-owned Shanghai media organisation was burned in a roller-coast ride on the A-share market between 2007 and 2008.
He is typical of many middle-class stock investors, who believe in the Chinese proverb: "A fall into the pit, a gain in your wit".
Unlike Western equity markets, where institutional investors play a dominant role based on valuation, mainland A shares are driven mainly by individual players whose trading value forms 70 per cent to 80 per cent of the total Shanghai and Shenzhen stock exchange turnovers.