From China Economic Net: “The jungle law is the law of nature in a market with full competition. Such condition is extremely severe in the Chinese securities market, which is mainly ascribable to the information asymmetry between participants: between stock traders and institutions, between stock traders and the government, and between institutions and the government. Interest groups often utilize information asymmetry to seek maximum interest through deceptive artifice.
Thus, China’s stock market becomes arena for the interest groups, who may engage in the game by making the most of legal loopholes, the helpless of regulators and the ignorance of investors. Due to information asymmetry, the victory of such wrestling belongs to interest groups forever, with more than 70 million stock traders being the sacrifice.
Who are the interest groups in China’s stock market then? ”
Good question. Click here to read the full article.
