China’s stimulus blitz attracts more Gen Z stock traders with bigger risk appetite: report
Gen Z traders doubled to 110 million after the September policy measures, swelling the pool of investors with higher risk appetite, a Hurun-Ping An report shows
China’s stimulus blitz in September to rescue the nation’s economy has drawn more Generation Z investors into the stock market and swelled the proportion of traders with higher risk appetite, according to a research report.
This group of investors, defined as those born between 1997 and 2012, doubled to about 110 million or 30 per cent of China’s army of stock traders, a white paper published by the Hurun Research Institute and Ping An Securities showed. The pool of traders with higher tolerance of risk increased to 54 per cent from 49 per cent after the policy action, it added.
China’s central bank unveiled two new funding facilities to spur stock buying on September 24 and pledged to cut borrowing costs for home purchases, after persistent weak data threatened to sap confidence among the population. It triggered a world-beating rally in Chinese stocks at home and abroad as foreign funds returned.
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“The younger generation has become the main force on the market,” the report said. “These young investors are very enthusiastic about technology innovation and fledgling industries, and are more willing to take higher risks to seek high returns.”
Beijing’s stimulus measures also broadened the geographic composition of Chinese stock investors. Investors from non-tier-one cities now account for 61 per cent of them, up from 42 per cent before the policy announcement.
China’s benchmark CSI 300 Index rose 15 per cent in 2024, turning around from one of the world’s worst performers. Most of the gains were made in the few weeks after September 24. Stocks have since traded sideways as investors called for more forceful follow-up measures.
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Over the past year, 58 per cent of investors have reaped at least a 10 per cent gain from stocks, according to a sample data analysed by Hurun and Ping An Securities.
