Scores of retail investors are dabbling in micro-cap stocks - stocks whose market capitalisation is tiny - operating under the radar of big funds and investors and their massive market-moving flows.
While institution-dominated companies with large market values in sectors such as banking and manufacturing have faced selling pressure from investment funds in a struggling economy, micro stocks have become neat counter-cyclical targets.or hot concepts such as AI, making the retail rush somewhat similar to last year's meme-stock frenzy in the United States, albeit without short-sellers on the other side of the trades.
"The connivance is hurting the system of value investment, encouraging misbehaviours, and is negative to long-term health of the market."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.has slumped 14% this year after sell-offs in once favoured sectors such as battery companies and spirit makers.
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
La source: Investingcom - 🏆 450. / 53 Lire la suite »