China’s annus horribilis has seen its stock markets fall, funds run up losses and foreign investors run for the exit. But areas of the market dominated by small stocks and frequented by the country’s retail investors have done surprisingly well.
The Wind Micro Market Cap Index, which tracks the 400 China-listed A-shares with market value typically less than 3 billion yuan each, is up 37% so far this year. In contrast, the blue-chip CSI300 Index has lost 8%. Chinese regulators meanwhile seem cool with the micro-cap craze, even though it is worryingly reminiscent of the casino-like Chinese market culture of more than a decade ago.
The China Securities Regulatory Commission did not immediately respond to a request for comment.Retail investor Helen Wu is not bashful talking about “stir-frying” - the practice of pumping up stocks with hot concepts. Retail investors are a big force in China. CSRC Chairman Yi Huiman notes that their transactions accounted for about 60% of the total A-shares turnover in late 2022.
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: SaltWire Network - 🏆 45. / 63 Read more »