Stars make huge profits from stock market increase
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A scene from the 2011 TV seriesThe Legend of Zhen Huan, starring Sun Li (center) as Zhen Huan. Photo provided to China Daily |
Actress Sun Li, who played the lead role in the hit TV drama The Legend of Zhenhuan, has seen her investment in Hairun TV become locked in as the film production company's application for an initial public offering through a reverse merger was recently denied by the securities regulator.
Sun is not alone, as the regulator has denied IPO applications from a string of companies backed by celebrities, including talk show hosts Chen Luyu and Zhou Libo.
Some observers say firms use the fame of celebrity backers to attract investors and boost sales.
"If my favorite singer or actor owns shares in a listed company, I will definitely buy the stock of the company to support him," said He Ziying, a 31-year-old stock market investor in Beijing.
But she said average investors cannot learn much from the successful investment stories of celebrities.
"It is easy for them to make profits because they have a lot of money and they have a wide circle of contacts that feed them information and approach them with investment opportunities," He said.
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