Hot money warms summer stamp sales

BEIJING - Thanks to hot money, China's postage stamp market won't take a summer vacation this year.

Most stamp prices kept rising in July and August, usually the slow season for stamp sellers, insiders said.

"Plenty of hot money has entered the market, pushing the prices, and some stamps even hit their peak recently," said Huang Junqiang, sales manager at Xianglongxuan Stamp Co at Madian Memorabilia Market near Madian Bridge on Beijing's North Third Ring Road, the largest stamp market in Asia.

Huang said more money has streamed into the market since last year, as the return on traditional investments such as property and the stock markets grew less enticing.

Statistics from www.yp001.com, one of the largest stamp-exchange websites in China, shows that Wednesday trade volume as of 5:00 pm was 13.3 million yuan ($2 million). Its daily trade volume peaked at 20.51 million yuan on July 22. At the beginning of July, it was only around 3 million yuan.

"Speculative money could definitely affect the stamp market, since stamps are a kind of commodity on the market," said Lin Gang, vice-general manager of China National Philatelic Corp.

Lin said that stamps are different from other commodities, and speculation in them is more difficult than in stocks because they have more cultural than monetary value.

However, insiders said almost two-thirds of buyers are seeking profit from the trade.

Qian Guangmin, another dealer at the Madian Stamp Market, said most of his customers are looking for stamps whose prices could rise in the short term.

The most popular stamps are those for the cycle of 12 Chinese animal signs that represent the years, Qian said.

These stamps have been issued annually since 1980, and the first of them, the golden monkey stamps, have cost 12,000 yuan apiece since April. In 2010, the price was 8,000 yuan each.

According to www.xx007.com, China's largest stamp-exchange website, by registered members and turnover, a sheet of 24 monkey stamps from 2004 rose to 800 yuan on Wednesday from 350 yuan on June 30.

"Compared with their price last summer, the third round of monkey stamps increased almost tenfold, and many other such stamps are rising, too," said Huang, the stamp dealer's sales manager.

The flourishing stamp market also encourages Chinese cities to organize stamp-related activities.

After Luoyang in Henan province and Mianyang in Sichuan province, Wuxi, of Jiangsu province, will host the 27th Asian International Stamp Exhibition between Nov 11 and 15.

Thirty-one member countries and regions of the Inter-Asia Philatelic Federation will take part in the exhibition, displaying 1,300 frames of stamps.

Auctions and sales will be held during the five-day exhibition.

China Daily

(China Daily 08/04/2011 page13)