To The Moon

Today, the Chinese stock market experienced a major drop, with many new investors facing their first "shock" just after entering the market. Some are panicking, seeking ways to cut their losses, while others are humorously accepting their fate, saying they "aren't destined to get rich." Voices calling for calm and composure are emerging in the market.

Statistics show that this wave of new investors opening accounts is primarily made up of young people in their 20s and 30s. On the second trading day after the “Golden Week” holiday, the market saw a sharp decline, with the Shanghai Composite Index plummeting 230.92 points (a 6.62% drop), while the Shenzhen and ChiNext indices fell by 8.15% and 10.59%, respectively.

Many new investors, hoping to ride the upward trend, entered the market during the holiday period, only to face a harsh reality today. This has left many feeling anxious, with social media platforms like Weibo and Xiaohongshu flooded with posts seeking advice.

One person shared how they invested a significant sum, hoping for quick profits, but today's market crash left them restless all day, contemplating exiting quickly to minimize losses. Others humorously admitted that they are "not meant to make money" and should focus on working hard at their day jobs.

Mr. Zhang, a Shanghai-based securities professional, mentioned that the market's recent strong performance led to a surge in new account applications, especially among young people in their 20s. He observed that many of these new investors have little to no prior experience, didn’t prepare, and didn’t analyze market trends or stock types. They simply entered the market thinking they could easily make money—making them more vulnerable to losses.

He pointed out that for seasoned investors, today’s fluctuations are a normal part of the stock market and won’t cause much concern. However, new investors are likely to feel uneasy and might even exit the market. “While the recent bullish trend attracted a lot of new investors, many of them might exit at the first sign of significant loss, as they are mostly driven by short-term gains,” he explained.

Reports show that the majority of new investors are younger, especially those born after 1985 and 1990, while the number of post-2000 investors is also increasing.

For these new investors, this volatile market is their first lesson in investment: Stay calm. Market fluctuations are normal, and if you invest based on short-term enthusiasm, you may not withstand the ups and downs of the stock market. The market doesn’t offer special treatment to those just starting out.

Several Chinese brokerage firms have also issued reminders to new investors: Don’t rush, move cautiously. Always invest with spare funds, and don’t let investments negatively impact your daily life.

In the world of investing, ups and downs are inevitable. The key is to stay calm, make well-thought-out decisions, and avoid impulsive reactions. Patience and strategic thinking will guide you through the market's storms, helping you build a more resilient and sustainable portfolio.

$SHANGHAI COMPOSITE INDEX EXCHANGE-TRADED FUND(510210)$

$Shenzhen Component B Return Index(399003)$

$ChiNext(399006)$