China’s Incendiary Market Is Fanned by Borrowers and Manipulation
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An investor monitored stock prices at a brokerage house in Beijing. Chinese officials promoted stock rallies and intervened when prices plummeted. CreditNg Han Guan/Associated Press
SHANGHAI — At the height of the frenzy for Chinese stocks, just about every company was a winner.
An online gaming start-up was valued at $7 billion. Shares in a fireworks company that had moved into finance shot up 300 percent. A struggling property developer was transformed into a stock market darling, just by changing its name to suggest it was an Internet company.
Then there was the case of Beijing Baofeng Technology, an online video company whose stock price soared 4,200 percent in the three months after it went public early this year. The company’s shares climbed by 10 percent — the maximum amount allowable under exchange rules — nearly every day for more than 30 days.
Viewed through the lens of the recent market tumult, experts said China’s stock bonanza bordered on the insane…
China’s Incendiary Market Is Fanned by Borrowers and Manipulation
