Others News
- Guangdong News
Date: 25-May-2007 Sources: (Shenzhen Daily)
WHILE most of the country is caught up in the fervor surrounding the bullish domestic stock market, 38-year-old Li Tie, who earned millions in stocks 10 years ago, is concerned about the issue of high housing prices.
'I've talked with Lin Liren, the man who pioneered the cooperative self-built home movement in Shenzhen. We hope to come up with some suggestions and solutions to the continuously rising housing prices,' he said.
Born into a worker's family in Baoji, Shaanxi Province, Li dropped out of a Beijing university in the third year, because he was too busy with a small firm he started as a sophomore.
'I didn't do well in the national college entrance exams and could not go to my dreamed university to study computer science. Anyone will need a job to make a living after graduation, and since I was doing good with the small firm, I decided to quit school.'
At 24, Li returned to his hometown, after making a small fortune selling computer game cards. It was then that a friend introduced Li to the nascent stock market in 1995.
Li moved his firm to Shenzhen the same year, because the city had China's biggest electronics market and many factories that could manufacture his goods at low prices.
'I invested some money into the market in the middle of 1995, soon lost nearly a half by early 1996. But I didn't sell them. After researching the companies and the market for some time, I began to make money.'
Li said he had bought 300,000 shares of a software company at 12 yuan per share, and purchased more as the price rose. In the end, he made 10 million yuan from 1 million shares.
'The key is I can see the value in those stocks is underrated, and buy in at a huge volume. I will buy more as the price rises, to help it rise more, and sell them when they've brought me satisfactory returns,' he said.
In 1997, Li was invited by several newspapers to write columns on investing, after media covered his success story.
In 2001, Li posted a story on the Internet recommending shares of Netease, which cost less than US$1 apiece after the Net bubble broke. Within a year, the value of the stock rose by nearly 100 times.
Li said he had been keen on investing in Internet firms since 1999. His company developed a Web 2.0 site and invested in intelligent search engines, but met a strong competitor and was forced to stop the business. He lost much of the fortune he earned in the stock market.
Then, in 2005, when he saw the chance to invest in the stock market again, he mortgaged an apartment and invested all his money in shares of China Merchants Bank.
'I sold them after the price tripled,' he said.
Li said he was more concerned about the housing market because he hoped to contribute some ideas to help solve the problem.
'I can live comfortably off. It doesn't matter much to me to earn more money. I hope to see people around me happy and can afford an apartment of their own,' he said.
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