‘I’m Not Going to Wait’: Young Chinese Jump Into Stock Frenzy

Young people in China have jumped into stock trading in the past two weeks since Beijing took its most aggressive steps yet to revive economic growth and persuade consumers to start spending.

On one popular online stock trading app, new accounts surged among people under 30. An account manager at a brokerage firm in China’s northeast was flooded with questions from first-time investors. University students spent their Golden Week holiday break last week reading up on investment advice.

These new investors are trying to get a piece of the biggest rally in nearly two decades. But they are taking a big risk: The gains have been driven by the changes in policy and are likely to depend on further government actions to support the economy.

And markets will be on a hair trigger. On Wednesday, after rising 6 percent the prior day — the 10th straight day of gains — stocks in China traded sharply lower.

The frenzy to invest is a dramatic departure for people in China born after the turn of the century. A dismal economy has been the status quo during their adult lives. But now, the fear of exposure to China’s stagnant stock market has been replaced by a fear of missing out, despite the risks of investing in a volatile market.

“There have been so many customers opening accounts in the past couple of days, and most of them are newcomers,” said Tan Zhiming, an account manager at Northeast Securities, a brokerage firm based in Changchun.