75pc of Chinese families with stocks profit after first-quarter market rally: study
Three out of four mainland families with investments say they have profited from this year's first-quarter rally in the stock market, a survey has found.
In contrast, only 16 per cent of families saw profits in the second half of 2013 when the nation's stock market slumped to a record low.
The study, carried out by Southwestern University of Finance and Economics in Chengdu , interviewed 5,000 families by phone between January and March and found that 6 per cent of them traded on the stock market.
The Shanghai Composite Index rose 16 per cent in this year's first quarter after surging 58 per cent in the second half of last year.
The survey found more young people were investing in stocks, with 13 per cent of the respondents aged less than 30.
About 31 per cent of families opened their stock trading accounts after the middle of 2013, with nearly 40 per cent of these new investors coming from so-called third- or fourth-tier cities - or those at county level.
However, the survey showed that veteran investors enjoyed a better performance than newcomers.
It found that 78 per cent of families that started stock trading before the middle of 2013 had made money from the market, compared with 72 per cent among those with a shorter investment history.
In addition, the survey found that the more stocks a person held, the more likely he would make profit.
Of those investing in stocks of more than four companies, nearly 85 per cent said their investment had been profitable - much higher than 74 per cent reported among those investing in fewer than three stocks.
The survey also found that those who had received a higher education or had a longer investment history tended to be more optimistic about the market's prospects than others.