Meanwhile, many investors don’t regret their bets on stocks even in the face of the latest drops.
Li Ping was among those who sold homes to free up cash to invest in stocks, hoping for better returns.
In April, 51-year-old Ms. Li sold her three-bedroom apartment in Beijing’s eastern Chaoyang district for 7 million yuan ($1.13 million). Since then, she has parked 4 million yuan in the stock market via a fund manager.
“The fund that I have invested in is very mature and professional,” she said, adding that she thinks the market will stabilize and rise again.
Ms. Li has a lot at stake. She now lives in a rented apartment with her husband near his workplace. Her older daughter is married but her younger daughter is going to high school in the U.S. Ms. Li, who works in the insurance industry, said she needs her stock investment to yield more than 20% a year to cover her daughter’s school fees and other expenses. “The yield I’m getting is definitely more than the rent I pay,” she said.Well, just as long as you're not asking for very much from your fund manager...
(An interesting issue, China's stock market. Is China's stock market different?, i.e. it is reasonable to rely on 20% returns for more-or-less immediate financial needs? I don't think so, but so much about China is different than in the United States that it's probably worth asking the question. If someone relied on a mutual fund to grow 20% a year in the United States, I'd say they were nuts. (Of course, I'm a boring index fund investor, so I would say that, wouldn't I?))