In a global economy troubled by the coronavirus pandemic, China’s recovery has offered a glimmer of growth. Chinese stocks rose by nearly a trillion dollars in the span of a few short weeks, shocking even the most sanguine of financiers.
Along with the foreign money pouring in, a big piece of the momentum, as in many Chinese rallies, is fueled by ordinary investors.
“It’s just like gambling,” said Wu Hao, a small-time investor from Beijing who rode another remarkable rally in Chinese stocks, in 2015. Mr. Wu’s investment more than tripled. “Brave people can make money,” he said. But when the market crashed, he lost $2,800.
Now small investors Mr. Wu and foreign whales with billions of dollars are watching the same elements of delirium in the market and wondering if history will repeat itself.
Even with the ups and downs of recent weeks, China’s stock market is still worth a quarter more than it was a year ago, bringing tremendous wealth to investors. The collective value is hovering around a $10 trillion marker.