Interesting article in Shanghai Daily on local investors – who they are, how they approach stocks, etc. Also scared the crap out of me in a way, but I shouldn't be surprised. All you have to do is look at Hong Kong and understand that what goes on here is even worse with respect to insider trading, irrational picks, etc. I find all stock markets kind of scary with respect to how choices are made, but suffice it to say that I will not be getting in the market here anytime soon. Here's the fun quote:

They use lucky numbers to decide on stocks, invest with cash stored under the mattress and are easily spooked by the latest market rumor. These are all popular anecdotes about the typical retail investor riding the rollercoaster that is the Shanghai Stock Exchange.