Beijing – Hu Xijin, the former editor-in-chief of the “Global Times,” recently revealed that he had exhausted 300,000 yuan (approximately 55,700 Singapore dollars) in stock investments, resulting in a loss of 9,050 yuan. He announced his foray into the Chinese A-share market with much fanfare two months ago.
Despite running out of funds in his trading account and having no money left in his linked bank card, Hu remains unperturbed. He even borrowed money from friends to bolster his stock account and purchased more shares of two stocks just before market closure.
Hu remains optimistic about recouping his losses, even if it takes more time than initially anticipated. He posted a screenshot of his current stock account, showing a balance of 310,000 yuan. Among the stocks he bought, one saw its profit margin drop from 12% to just below 0.5%, while the other is his second-largest loss-making stock. However, Hu remains confident about its potential rebound.
Upon entering the market, Hu experienced the roller-coaster journey characteristic of many retail investors in China. He made a profit of 104.7 yuan on his first day, which grew to 226.43 yuan the next. However, by the third day, he faced a loss of over 900 yuan. By the fifth day, he managed to turn his fortunes around, with a profit of approximately 2,829 yuan.
In July, after severe flooding occurred in several regions, including Beijing and Tianjin, Hu took a break from updating his stock trading diary. When he returned on August 4, he announced he would no longer post daily updates but would instead focus on achieving long-term gains.
Three weeks later, on August 22, Hu dispelled rumors that he had liquidated all his holdings and fled the market, reiterating his commitment to staying invested.
While the economy shows signs of stagnation with declining consumer demand, manufacturing, import-export data, and reduced financing intentions, Hu remains a beacon of optimism. Despite recent declines in major stock indices, Hu believes that the Chinese policies to boost private economic growth and invigorate the capital market will eventually bear fruit.
Some online commentators praised Hu for standing with small investors and being their voice, while others criticized him for his overly optimistic view. Several of these comments were quickly removed, with reports suggesting that a post by Hu on Wednesday was deleted due to negative feedback in the comments section.
Famous figures dabbling in the stock market is not uncommon in China. Some, like renowned CCTV financial anchor Li Yufei, have revealed significant losses from stock trading in the past. This suggests that while fame can bring attention, it does not guarantee success in the ruthless world of business.
Hu’s high-profile stock trading has sparked some interest in China’s languishing stock market. However, with the economy’s current challenges and dwindling investor confidence, it’s uncertain whether this will be enough to rally the market.
Whether Hu will ultimately break the “curse” of the Chinese stock market or find himself trapped in a difficult position remains to be seen. But one thing is clear: his counter-cyclical venture has earned him a significant amount of attention and online traffic.