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Thread: A-share market, the worst stock market in the world!
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[quote=WCTMAN,299986]The Chinese stock market is very immature compared to, say, the NY Stock Exchange. As an immature entity, this market has little in the way of enforcement of rules and regulations. In the absence of enforcement and the subsequent imposition of serious penalties ( ie huge fines, jail time, lifetime trading suspensions ) for market offenses such as insider trading, sure, the novice is going to get fleeced. Of course, there are people who made huge profits in this "wild west casino", and those people were and are connected to govt. and the principals in the corporations listed. This is insider trading at its finest. Look no further than China Petroleum. While I don't have the exact numbers, most analysts agree that the IPO was grossly undervalued, and those who had access to these shares made huge overnight gains. This type of market behaviour is very damaging to the market itself, since without confidence in the fairness of the "game", buyers either stay away or bail out at the slightest bit of bad news, and shares fall ( plummet ) accordingly. Unless and until the "authorities" clean up the game, and its image and reputation, the market will continue to suffer from wild fluctuations, making investment a very risky business indeed.[/quote]
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