China has the second largest economy in the world right now and it only continues to rise. The country is seeing a lot of IPOs happen and there will even be the most ever in 2015 which is creating more and more billionaires. In the first six weeks of this year the company gained two dozen new billionaires with tons of investors funneling money into their companies.
The companies that are seeing the most traffic and investments are airlines, video game developers and drug store chains. The IPOs are apparently the popular thing to invest in right now and the shareholders are becoming rich extremely quickly. More than 20 stocks hit the market in January of this year and it is continuing to rise. The smaller of China’s two stock exchanges, the Shenzhen Composite, is up 13%. People are becoming billionaires over night in China if they have a good company or product because people are eagerly awaiting a good investment opportunity. The situation is exactly like America in the 1990’s. The Shenzhen rally alone created three new billionaires with plenty of other making millions as well.
Investors are also anticipating for even more increase in the current stock gains. The current input costs are low and it makes the stocks pretty cheap with lower company fundings. By having lower interest rates and lower required reserve, it makes investors more willing to dump their money into a company. Despite such a surge right now, there is also the possibility that the market could cool off because investors might get overwhelmed by the amount of money being put into all of these different stocks with such a high demand.
Only time will tell just how long the Chinese stock market can sustain this trend for, but right now it is certainly booming. Tons of people are becoming billionaires right now and investors are happy to see where these companies can go if they get the money they need.
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