Chinanews, Beijing, Mar. 19 – Encouraged by the bullish stock market performance, thousands of Chinese entered the stock market hall to make registration after the Spring Festival. Information from the China Securities Depository and Clearing Corporation Limited shows that about 1.23 million people have registered in the A-shares securities markets in two weeks since the end of the week-long Spring Festival holiday, exceeding the total number of new shareholders registered in 2005, CCTV International Channel reported.

 

Statistics show that from February 26 to March 13, the number of new account holders registered in A-shares markets reached 1.23 million and the number of people registered for buying funds reached 1.05 million. Chinese private investors, once the neglected group, had taken millions of yuan of capital into the securities market to play an increasingly important role in the market. This week, experts from Guotaijun'an and Shenyinwaiguo, the two renowned Chinese securities institutions, have begun to consider the influence of this new group of shareholders to the stock markets.

 

The two financial institutions expressed their concern about the fanatic behaviors of the new shareholders.

 

Once the investors ran into shortage of funds and made investment recklessly, they would create bubbles in the stock market. And when such bubbles burst, irrational investors would suffer a great economic loss, said an expert from Guotaijun'an.

 

Individual investors would bring more capital into the market. However, the increasing capital might not necessarily push up stock prices, said a person at Shenyinwaiguo.