The Shenzhen Stock Exchange (SZSE) has released the findings of its 2013 retail investor survey report. The SZSE has carried out an annual survey since 2009, covering investors’ trading practices, brokerage houses’ risk education and investor reactions to trading risk alerts.
Retail attitudes are perhaps more significant in China than in more open markets, as retail optimism can re-vitalise trading activity, with growing retail momentum stimulating a virtual upward cycle.
The survey received over 3,000 responses from investors who have recently traded stocks. They reside in six areas where securities accounts holders tend to proliferate in China, Beijing, Dalian, Shanghai, Hangzhou, Wuhan, Chengdu, Guangzhou and Shenzhen. 100 replies came in from ChiNext investors and there were 350 cross-board investors.
The report said that in 2013, retail investors’ confidence in equity investment and trading activity both increased. The average balance of assets in the accounts of the investors surveyed was RMB 494,000, an increase from RMB 381,000 in 2012.
The average trading frequency for all investors was 5.3 trades per month in 2013, compared to 5.0 trades per month in 2012. ChiNext investors made 5.1 trades on average per month, compared to 5.4 trades per month in 2012. Non-ChiNext investors traded more actively in 2013, with their average trading frequency rising from 4.8 trades per month in 2012 to 5.4 trades per month in 2013.
ChiNext investors’ expected return and risk tolerance were higher than that of non-ChiNext investors. According to the survey, ChiNext investors’ expected annualized average rate of return was 25.9% in 2013, which was close to the figure of 26.2% in 2012. Their tolerable rate of losses was 23.6%, compared to 24.6% in 2012. Non-ChiNext Investors’ expected return on equity investment rose from 19.1% in 2012 to 21.8% in 2013.
The average commission rate of securities houses continued to fall in 2013, Compared to the levels of 0.08% in 2012 and 0.11% in 2011, the average commission rate was 0.07% in 2013.
94% of the respondents said they had paid attention to trading risk announcements issued by listed companies and the same percentage also said that the content of such announcements need to be improved.