According to a recent survey jointly conducted by China Securities Journal and Huading Investigation Company, 77 percent of stock investors lost money on Chinese stock markets this year.

On the basis of 2,671 pieces of Q&A papers targeting at small and medium-sized investors in 12 major cities including Beijing, Shanghai and Guangzhou, the survey revealed that only 12 percent of Chinese stock investors gained profit from the share markets this year, the China Securities Journal reported on Monday.

Some 11 percent made both ends meet in their share investment this year, it said.

At the beginning of this year, the composite index of Shanghai Stock Exchange was around 1,260 points, but the index dropped to 1,152.78 points on Monday.

The survey showed 46 percent of investors believed the split share reform was the most important factor influencing Chinese stock market performance this year, while 24 percent believed confidence was another major factor influencing the market.

The split share structure refers to the existence of both tradable shares and non-tradable shares owned by the state and legal persons. Non-tradable shares make up about two-thirds of the shares of the firms listed on the two markets in Shanghai and Shenzhen.

The split share structure has been blamed as the key culprit for China's stagnant stock performance. In 2005, the Chinese government launched a reform to end the split share structure and make all shares of listed companies tradable.

The survey showed almost 90 percent of investors were cautious about future share investment, and 25 percent decided to withdraw fund from the stock markets. Only 1 percent planned to increase investment in China's stock markets, according to the survey.

(Xinhua News Agency December 27, 2005)