The frenzy over GameStop has inspired amateurs everywhere to shake up stock mark…
The frenzy over GameStop has inspired amateurs everywhere to shake up stock markets, including China. Talk of the video game retailer’s epic share surge has taken over Chinese social media. Mainland China’s financial markets are very different from New York’s. Short-selling is highly regulated and incredibly rare, making it hard for Chinese investors to replicate the US frenzy that has pumped up GameStop shares as a way to stick it to hedge funds that bet the company’s stock would crash.
Even so, everyday investors in China have a ton of influence over market activity. There are more than 177 million retail investors, or individual traders, in China. That’s 99% of the investor base, according to December statistics compiled by the China Securities Depository and Clearing Corporation. Chinese investors could in theory try to collectively push up the price of an individual stock and then dump it before institutional investors do.
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