Mr. Liu is the Economic Business manager of the CITIC Securities office at Zhang Zizhong Road. CITIC Securities is a state-owned company. Its biggest shareholder, the CITIC Group, owns 44 subsidiaries around the world; in Shanghai, Shenzhen, Hong Kong, France, Germany, etc. Their main focus is on the financial sector, industrial production and the service industry.
The Economic Business Department is in charge of providing a stock trading platform and professional advice to its clients. It makes its profit with commissions on transactions. No matter if the stock market is performing well or not, their profits are stable.
In China stock is traded in units of 100 shares and the cheapest stock is about 2 -3 RMB per share. So, the lowest transactions are around 200 – 300 RMB.
At Zhang Zizhong Road the company is providing trading terminals to their clients. According to Mr. Liu, the clients that make use of their facilities in the trading rooms are usually trading in small volumes and are mainly focused on achieving short-term gains. They often invest very little money and try to make a profit on fluctuations in share prices. The majority of the clients is not visiting the trading rooms very often. They make their investments for the long term and will only sell after a couple of years. The clients that trade in large volumes will do so at home, via the Internet.
Mr. Liu studied accounting at the university: He started to become professionally involved in the trading of shares 5 years ago. According to him, one can only be a successful investor if you know the current situation of market very well. His advice is not to invest in real estate at the moment. He recommends investing in technology and in business related to retail; for example in the wine industry or big shopping malls.