Recently, a screenshot allegedly from Founder Securities (601901) went viral, claiming that 81% of A-share retail investors suffered losses in the first 10 months of 2025, with small investors (under RMB 100,000) losing 98.7%. However, this data has been debunked as fabricated.
Key points of the disputed report: - Only 19% of retail investors profited, with fewer than 5% achieving over 15% annualized returns. - Less than 0.5% attained 30% annualized returns in 2025.
Investigation reveals: 1) The Securities Association of China (SAC) never published such statistics, confirmed by multiple checks and a chief analyst's statement. 2) China Securities Depository and Clearing Corporation (CSDC) only releases annual data—not monthly/quarterly breakdowns by account size. Official 2024 data showed retail investors gained RMB 14,100 on average amid a RMB 10.8 trillion market cap increase.
The viral data originated from a Snowball blogger (70k followers, Australia-based) citing unverified Baidu sources. Critics note glaring flaws: - SAC doesn’t disclose investor performance metrics. - CSDC doesn’t provide quarterly/monthly reports. - The implausibly precise figures contradict 2025’s bull market, where Wind data indicates retail investors gained RMB 30,000 on average (based on a 23.38 trillion market cap rise).
Industry peers have dismissed the claims as "typical garbage rumors" from platforms like East Money and Snowball.
Background on Founder Securities: - Recently penalized for违规荐股 (improper stock recommendations), leading to demotions. - Multiple high-profile analyst departures in 2025. - Despite three years of declining performance, Q1-Q3 2025 saw revenue surge 67% to RMB 9.08 billion and profits jump 93% to RMB 3.8 billion, with brokerage income up 36.47%.
The irony? While the fake report highlighted investor losses, Founder Securities’ brokerage profits soared 46.26% in H1 2025.
Comments