A surge in daily trading turnover at the Shanghai Stock Exchange, which exceeded 1 trillion yuan ($161 billion) for the first time on April 20, was seen to go beyond the capacity of the bourse's software to report the actual numbers.
The exchange's software was simply not designed to display volumes that high, an indication of the scorching trading fever that is sweeping China.
In a sign that the stock market buzz has spread to younger generations, most of the new accounts in the A-share market during the first quarter of the year were opened by individual investors born after the 1980s, according to official data.
But as investors keep flocking into the stock market, there are concerns about whether the market rally will continue into the second half of the year. The investment spree will not end as long as money supply remains in a moderately loose range and there are not yet signs of any policy announcements that will hold back the bull run.
It is important that investors remain cool-minded amid the trading fever, given the fickle nature of the stock market. But for the regulatory authorities, it is far from enough for them to merely warn against excessive investment enthusiasm. The establishment of a transparent market with full disclosure of information will be vital for the stock market to become a steady investment channel for Chinese people.
The author is Li Xiang, a finance lecturer at Shanghai University.
