Lynic Wang wants to have a home of his own, but property in Shanghai, where Wang lives and works, is very expensive. The two-bedroom apartment he dreams of costs between 1 million and 1.2 million yuan (about $156,453). That's far from affordable for the average Chinese professional who takes home roughly 180,000 yuan (US$23,468) a year and that's if you work for a multinational corporation. Local firms pay less. Wang's solution – invest in the stock market.
Wang, a natural resources specialist, who is invested in companies like Shanghai Pudong Development Bank, entered the market in 2004, back when few imagined the Shanghai Composite Index could breach the 2,000 level. In early May 2007, the SCI crossed over the 4,000-mark.
"Yes, I've earned some money," Wang says, but adds that he will be selling his holdings within the next two weeks. The Shanghai market is sizzling hot right now and Wang is afraid of all the new investors pouring into the market, speculating on shares. "I have seen the market go from 2,000 to 900 points, and from 900 to 4,000. It's going up too fast," he says.