Shanghai Stock Exchange investors are on a rollercoaster ride of highs and lows. Photo: Yang Hui/GT

On May 5, when the Shanghai Stock Exchange (SSE) Composite passed 4,500 points and the market was reveling in a bullish atmosphere, the Global Times talked to some investors, asking them to share their experiences. Now, just two months later, Chinese mainland stocks have shrunk by nearly 30 percent. Government measures like suspending the initial public offerings (IPOs) of 28 companies and approving the move for 21 big securities firms to buy shares of major companies have not appeared to stop the plunge. The Shanghai Composite Index plummeted to 3,507.19 on Wednesday. Our May 5 investors and others told us how they are dealing with the dramatic tumble.

Wang Yuanming, university student

I have been losing money. I thought that when the SSE Composite index reached 5,000, there might be some adjustment but I didn't anticipate such a substantial correction.

The market's technical correction developed into a share plunge and the stocks went down below all periodical average lines. Usually, when stocks go below periodical average lines, there should be some rebounding, but, this time, the market has not recovered due to the de-leveraging effects of margin trading and security financing.

Personally, I believe that the bull market has not ended. For the short term, the market needs to stabilize and then investor confidence will recover. The government's measures like suspending IPOs will not save the market in just one day. It will take longer. I still have all my money in the stock market and it is trapped there. I have no more liquidity to increase my investment. I will wait for the rebound and then act.

(Wang Yuanming talked to the Global Times on May 5. He entered the stock market last November because his parents wanted him to get experience in share dealings. He believed that it was time to be more conservative and cautious when the SSE Composite reached 4,000 points. And he said that it required patience to profit in the market.)

Yu Yushan, full-time stock investor

I entered the stock market about 20 years ago. I have lost about 50 percent of the money in my account over these three weeks. It was a terrible market crash and something I have never seen before. On one hand, I think financial leveraging is a major reason for the recent disaster in the stock market and, on the other hand, China's stock market is still immature - the financial system in our country can be improved. We don't have many professional financial agents.

I have really lost too much money recently. I want to sell some of my stocks when the SSE Composite Index climbs a little to reduce my losses.

Liu Zhengtai, entrepreneur

There are many reasons for the slump but the main reasons are the effect of financial leveraging and that investors have lost confidence.

I sold my stocks long ago and I am waiting for an opportunity to enter the market again. I think that what the market needs most now is liquidity, so that investor confidence can be restored. Real confidence is built on the basis of sober thinking. I think that stock investors need sober brains and clear thinking.

(Interviewed by the Global Times on May 5, Liu has just graduated from the university and had started his own business. He entered the Shanghai stock market in 2013. His assets in his stock market account increased from five figure sums to seven figure sums.

After his friends asked him to, he created his own WeChat advice account to share tips and knowledge on share investment. He also created more than 10 WeChat groups and invited contacts from the finance world to share their thoughts on investing. More than 2,000 people joined these groups.

"There are bubbles in every economic cycle, and there are bubbles in every bull market. But after the bubbles vanish, new things will be created. And they will be better. The most important thing for us is to control the risks and stay alert to the risks," Liu told the Global Times in May.)

Wang Weirui, stockbroker

This slump happened for three reasons: first, stock prices have risen too quickly in the past year. Second, the supervisors de-leveraged and caused a domino affect. Then, financial leveraging expedited the slump.

I think that it would be normal for the index to stabilize at around 4,000 points, but the index has dropped to under 4,000. According to the figures, every investor in the Chinese stock market has lost an average of more than 320,000 yuan ($51,540).

What we need most now is to stop investors panicking, introduce effective measures to save the market, keep investors cautious and increase investors' awareness of the risks.

(Last time he talked to the Global Times Wang kept emphasizing the risks involved in share trading. He believed that most of the people entering the stock market then were amateurs. They knew little about finance, the risks or the rules and regulations of the market. And he thought that people would not really learn about the risks until they lost money.)

Wu Xulei, university student

Up till now I had been making money on the stock exchange. But the stocks that I own are still depreciating and I don't know if I will profit or lose if I keep holding onto these stocks.

I have heard that some people had actually caused this plunge in the market. For me, stock investments are still a learning process, where I can broaden my vision. Anyway, I have not invested much, so I am not too bothered even though I might lose money.

I haven't had much confidence in the market recently because of the consecutive slumps, but I think that it will recover in long term. I will not withdraw my investments but neither will I invest more. In the past, I have taken my earnings out and spent them. So my balance in the stock account is always this much. I won't do anything now and I will decide what to do when the market stabilizes.

(Wu Xulei previously told the Global Times in May that she started her stock market adventure last October, guided by her parents. She operates on information her parents give her and this information comes from their friends. Her earnings were generally used to cover her daily expenses.)

Lu Xunyang, employee at an investment bank

I entered the stock market last August. At that time, I had only invested 30,000 yuan. Then, I invested my annual bonus and asked for 900,000 yuan from my family in May. So I haven't really enjoyed the benefits of the bullish market.

When the index reached 5,176, my assets were worth 1.4 million yuan. I sold the majority and kept 500,000 yuan in my stock account. Last Wednesday I planned to use some of my assets to invest in the IPOs, but the government suspended them. About a week ago, I sold off all my assets, and now my profits are about 200,000 yuan.

I think that the large capital shares will stabilize, but the small-cap stocks will keep depreciating till the end of the week. It is a tragedy that no one saves or helps the small-cap stocks. I think that the index will stabilize at around 3,700 points, but it will rise back to around 4,300 points. However, the government plan to reform the financial markets has crashed.

Guo Shiliang, financial commentator

I think that the SSE Composite Index will stabilize at around 3,500 points, but the market is polarized. On one side, the blue chip stocks pulled up the average performance of the market. On the other side, those small-cap stocks with high valuations slumped and this resulted in panic. The polarization will continue.

In any market, there is the rule that 70 percent of the players lose, 20 percent will get even and 10 percent will profit. However, in this slump, the capital hasn't flowed from some players to the others. Instead, some of the hedge funds that shorted the market became the big winners. Ordinary investors should be extra cautious now.

The stock market doesn't lack liquidity but it lacks confidence. At present the market needs to restore investor confidence. Ordinary investors shouldn't buy in without thinking. They should choose their time to enter after the market stabilizes.

Li Ce, university student

I started to invest in shares in 2013, when I decided to take the Chartered Financial Analysts examination, wanting to learn more about the stock market. The money in my account rose about 30 percent over these years.

In my opinion the market has risen too quickly recently. Financial leveraging is responsible for this crisis. I think that although the government has taken some action to prevent the crisis worsening, it could do more. If the market could calm down and then progress quietly, there would be a solid foundation for China's economic development.

I think this is an opportunity for me to buy some quality stocks at low prices. Although I have lost some money I won't sell my stocks because I am prepared to hold onto them for a long time.

Jin Qiongjing, wealth management company employee

I have worked in a brokerage for more than eight years. Last year, I left the brokerage and joined a wealth management company and am in charge of sales.

I entered the stock market in 2005. Over the years I have invested a total of 200,000 yuan in the market.

I used financial leveraging, like margin trading and security financing, to invest. I also used margin trading from outside the brokerage in my stock investments. When the market reached its high point, I had almost 2 million yuan in my stock account.

Just before the Chinese New Year in February, I felt that the risks had grown too much so I withdrew my 200,000 yuan principal and left my profits and the financial leverages in my account. But when the market slumped, my profits were de-leveraged. Now I only have about 200,000 yuan in profit.

From my experience as a broker, I think the market is even worse than I anticipated. Even though I might lose all the profits I had it will be like a dream and it won't matter. I won't sell or buy more.

Huang Meitao contributed to this story