Playing the market - China's small investors

Playing the market - China's small investors

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(This story was first published in 2015.)

Chinese markets have had a tortuous start to the new year, buffeted by the falling yuan and two days of stock exchange suspensions in a week.

Weak factory and service sector activity surveys have added to the mix. Facing decisions of when or whether to buy or sell are millions of mom-and-pop investors - from pensioners, to security guards, to students.

. Shanghai, China. Reuters/Aly Song

These small investors dominate China's stock markets, conducting about 80 percent of all transactions.

Some are in it purely for the money. Then there are also those who trade for fun or to spend time among friends.

In one of the many brokerage houses dotted around China, people gather not just to trade stocks but to enjoy the company of fellow investors, many of whom are retirees.

. Shanghai, China. Reuters/Aly Song

Trading stocks is also a hobby for 16-year-old high school student Qian Yujie. He places his orders from a desktop computer at his home in Shanghai.

He began trading at the age of 13, when his father gave him 2,000 yuan ($300) to learn about stock investing. He fits trading into his schedule when he has a day off school.

"I like maths and want to study finance in college and I think it's very helpful for job hunting," Qian said.

. Shanghai, China. Reuters/Aly Song
Du Mingpeng, 50, (left) a security guard at a jewellery store, hopes to profit from his investments to give money to his son.

Many of the retail investors use an informal network to help decide which stocks they want to buy and sell.

At the weekends in Shanghai, hundreds gather at what is locally known as the "street stock salon" near the city's landmark People's Square to exchange tips and information and listen to long-term investors talk about their experiences.

. Shanghai, China. Reuters/Aly Song

Wu Lin'an sells his analysis of the stock market at the "street stock salon". Small investors will need to decide whether to stand their ground, get out or buy in to stocks they believe have a chance of turning them a profit.

"Further financial market volatility is likely," Moody's Investors Service said in a January 8 research note.

Moody's put the market turmoil down to an inherent tension between Beijing's attempts to reform its economy and give a greater role to market forces while maintaining economic and social stability.

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Slideshow

A notebook with information about stocks noted down by Wang Cunchun, 90, lies on his desk at home in Shanghai.
. Shanghai, China. Reuters/Aly Song

A notebook with information about stocks noted down by Wang Cunchun, 90, lies on his desk at home in Shanghai.

"Trading stocks is my biggest hobby," said Wang Cunchun, who only started to invest in equities after he retired from a stationery store in Shanghai.
. Shanghai, CHINA. Reuters/Aly Song TPX IMAGES OF THE DAY PICTURE 12 OF 23 FOR WIDER IMAGE STORY "PLAYING THE MARKET - CHINAíS SMALL INVESTORS" SEARCH "PLAYING SONG" FOR ALL IMAGES - RTS3OMM

"Trading stocks is my biggest hobby," said Wang Cunchun, who only started to invest in equities after he retired from a stationery store in Shanghai.

Gao Haibao looks at stock information on his mobile phone.
. Shanghai, China. Reuters/Aly Song

Gao Haibao looks at stock information on his mobile phone.

Yue Banghai checks on his laptop on the back of his electric bike at a “street stock salon” in central Shanghai. Yue is a businessman who's been selling futures and stock analysis software for five years. Every weekend, when the weather allows, Yue goes to the salon to drum up business.
. Shanghai, China. Reuters/Aly Song

Yue Banghai checks on his laptop on the back of his electric bike at a “street stock salon” in central Shanghai. Yue is a businessman who's been selling futures and stock analysis software for five years. Every weekend, when the weather allows, Yue goes to the salon to drum up business.

A man surnamed Zhou displays stock analysis software on a computer screen mounted on the back of an electric bicycle. Zhou said he has been trading stocks for seven years.
. Shanghai, China. Reuters/Aly Song

A man surnamed Zhou displays stock analysis software on a computer screen mounted on the back of an electric bicycle. Zhou said he has been trading stocks for seven years.

Investors share information about stocks written on a piece of paper during a “street stock salon” in central Shanghai.
. Shanghai, China. Reuters/Aly Song

Investors share information about stocks written on a piece of paper during a “street stock salon” in central Shanghai.

Lv Hai looks at a screen displaying stock analysis software during a “street stock salon” in central Shanghai. For at least a decade an area next to the People’s Square has transformed itself at weekends, with investors from all over the city coming to exchange stock information and learn trading skills from others. A few businessmen also promote their software.
. Shanghai, China. Reuters/Aly Song

Lv Hai looks at a screen displaying stock analysis software during a “street stock salon” in central Shanghai. For at least a decade an area next to the People’s Square has transformed itself at weekends, with investors from all over the city coming to exchange stock information and learn trading skills from others. A few businessmen also promote their software.

Investors' water bottles stand on shelves in the corner of a brokerage house in Shanghai.
. Shanghai, China. Reuters/Aly Song

Investors' water bottles stand on shelves in the corner of a brokerage house in Shanghai.

Wang Fugui, wearing a gold ring and a bracelet, leans on a window in the smoking area of a brokerage house in Shanghai.
. Shanghai, China. Reuters/Aly Song

Wang Fugui, wearing a gold ring and a bracelet, leans on a window in the smoking area of a brokerage house in Shanghai.

Tang Youyu, 73, stands near an information screen.
. Shanghai, China. Reuters/Aly Song

Tang Youyu, 73, stands near an information screen.

Investors play cards at noon break in a brokerage house in Shanghai.
. Shanghai, China. Reuters/Aly Song

Investors play cards at noon break in a brokerage house in Shanghai.

Investors in a smoking area look through windows at an electronic board displaying stock information in a Shanghai brokerage house.
. Shanghai, China. Reuters/Aly Song

Investors in a smoking area look through windows at an electronic board displaying stock information in a Shanghai brokerage house.

Wang Cunchun walks home from a brokerage house in the rain.
. Shanghai, China. Reuters/Aly Song

Wang Cunchun walks home from a brokerage house in the rain.