[Life] In 1989, China's first generation of stock investors

Author: JEFFI CHAO HUI WU

Time: Thursday, June 26, 2025, 2:01 PM

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[Life] 1989, China's first generation of stock investors

In the late 1980s, China's stock market was just beginning to take shape. During that era, most people had never even heard the word "stock," and those few who had would shake their heads, saying that it was like "gambling," unreliable, and even many economists were publicly debating whether stocks were a scam and whether they would disrupt the economic order. In such a chaotic, conservative, yet opportunity-filled era, I keenly realized that this was not just a passing trend, but a financial revolution that was about to fundamentally change the economic landscape of China.

At that time, there was no internet, no mobile phones, no financial channels, and no real-time market systems. Occasionally, there were one or two sparse articles in newspapers, discussing "stocks" or "equity," often with a tone of caution and tentativeness. Market information was fragmented, and almost all trading news relied on word of mouth; some people didn't even know what stocks were, let alone study or analyze them. As for me, with only a yellowed economics book and a regular calculator in hand, I began to gradually deduce the logic of supply and demand, trying to understand the patterns behind the fluctuations in stock prices. I repeatedly wrote down various hypotheses on paper, calculated different scenario simulations, and sought to validate my intuition.

In 1986, I had just been working for less than a year, with a monthly salary of about 600 yuan. In that era, this was considered a decent income, enough to maintain a basic living and even save a little. It was also in that year that I first heard about "stocks." The Shenzhen Special Economic Zone began to pilot shareholding reform, with companies issuing stocks to the public, which was a novelty nationwide, and no one could be sure what it really meant. I keenly sensed that this was not just a new way of managing finances, but the beginning of a structural opportunity.

The lack of information means that everything relies on one's own judgment. There is no professional financial analysis, no expert guidance, no data platform to rely on, and not even clear rules on how to buy and sell stocks. I remember very clearly that the first time I truly engaged with stocks was by chance when I heard that Shenzhen Development Bank was conducting a stock subscription. I did not hesitate, did not ask around, and did not wait for others' opinions; relying solely on my instinctive judgment of the trend, I took out an entire month's salary—660 yuan—and subscribed for 22 shares of Shenzhen Development Bank's stock at 30 yuan per share. At that time, many friends thought I was crazy; some shook their heads and said, "Is this thing reliable?" Others half-jokingly advised me, "Don't waste your money; wouldn't it be better to buy some home appliances or improve your life?" Yet I simply stood in line, filled out the paper subscription form, handed my cash to the counter, and felt incredibly certain inside, without saying a single unnecessary word.

At that time, the trading environment was primitive to the point of being almost untouched by modernity. There were no electronic screens, no online matchmaking; all market information circulated through rumors, and every piece of news was mixed with emotions and speculation. Every step in the stock market was filled with uncertainty. The entire society did not yet understand the concept of risk control, nor did anyone discuss macroeconomics or industry analysis; even "stock commentary" was merely vague speculation during casual conversations in teahouses. As for me, apart from that economics book and a calculator, I had nothing else, yet I continuously pondered logic, training myself to understand the deeper structure of the market and the fluctuations of human nature.

A few years later, the stock of Shenzhen Development Bank was officially listed, and those 22 shares began an almost mythical rise. From an initial price of 30 yuan per share, it soared to a total market value of 100,000 yuan. At the moment those numbers danced before my eyes, I did not lose control in excitement, nor did I indulge in the illusion of sudden wealth; I simply let out a long sigh of relief. I knew clearly that this was not pure luck, but the inevitable result of prior awareness and calm judgment. Back then, 660 yuan was equivalent to a year's income for an ordinary worker, while 100,000 yuan was enough to cover the down payment for a commercial apartment in a first-tier city. If calculated in today's value, this is almost equivalent to turning 5,000 yuan into a return of 1 million yuan.

For me, this is not a story of sudden wealth brought about by luck, but a process that has allowed me to see the true nature of finance. I understood earlier that finance has never been gambling, and the market has never been purely a matter of luck; its true essence lies in the combined forces of structure, order, psychology, and trends. It is the ability to see the path clearly amidst chaos and to execute it with determination. The real winners have never been those who chase after the excitement, but rather those who quietly ignite the spark before dawn.

I am not obsessed with the stock market because I understand that such opportunities will not repeat forever and should not be pursued as illusions of short-term wealth. Through the experience of holding those 22 shares, I established my own thinking framework, and since then, I have learned how to remain calm in complex systems, how to plan ahead, and how to take the initiative before most people have reacted.

I am one of the first generation of stock investors in China. No one taught me, no one guided me, there were no analysts, and no so-called investment courses; even the concept of the "stock market" had not yet truly formed. In an era of information desolation, I took my first leap forward relying on intuition, reason, and a solitary conviction. Those 22 stocks are still deeply etched in my heart, not only as the starting point of wealth but also as a symbol of the awakening of my entire life’s cognitive system. From that moment on, I knew that every future leap would not be found in the clamor of voices, but in the silent accumulation and clear judgment.

Source: http://www.australianwinner.com/AuWinner/viewtopic.php?t=696529