中国新投资者涌入 股市持续火热

New investors are rushing into the Chinese stock market after a roaring rally in March. The bulls think the upside will continue, while others are worried that the market is overheated.

Chinese mainland stocks extend their bull run into April, after gaining 12 percent in March.

More loosening of social security funds into the market, local government debt swap programs, and regulators' comments have all pushed up the indices.

Startups and Internet-related stocks led the rally after China's leadership endorsed the role of entrepreneurs and the Internet industry in economic growth.

The winning streak has also motivated more investors to open new accounts.

"Most of the new accounts belong to young people such as 20 or 30 year-olds, and others are from the elderly age bracket. In the meantime, many existing clients have come to update their customer information, including activating their accounts," said Han Chao, Central China Securities.

The stream of incoming cash flow has stimulated trade. The Chinese mainland market saw a historic near- 21 trillion yuan turnover in March. That run included an eight-day-straight rally with one trillion yuan for each session. More than four million newcomers have jumped into the market during the past four weeks, lured by the chance of making money.

Many friends of mine have been making money from the stock market, and it's tempting me to open accounts to give a try.

Analysts warn that just trying isn't enough. That's because the stock market requires fairly sophisticated professionalism and for most of the people, a risk-averse attitude is needed.

"Nobody comes into the market when the index was low, while everybody jumps in when the sentiment reaches certain levels. But the rally comes with risks," said Wu Xiaoqiu, director of Finance and Securities Inst. Renmin Univ..

"Take the ChiNext board for example. Its PE ratio is rather high at 85 to 90 multiples. This also means high risks. So investors should be aware of this."

Others disagree, saying that the market surge would continue on the back of the government's targeted measures to spur growth in such sectors as real estate, infrastructure building, and e-commerce. 

Perhaps more certain is the old saying that all investments are risky, and don't put all of your eggs into one basket.