An insider’s story on China’s rigged stock market. From Forbes magazine:
Managers of Government-run Chinese mutual funds keep coming up with the same can’t-miss moneymaking opportunity for Lin Rongshi–and for themselves. The messenger might be a low-level functionary or a trusted middleman. Lin, a private fund manager, said the message sometimes would be delivered in his high-rise office overlooking Shanghai’s financial district or, more discreetly, by mobile phone. But the pitch is identical.
“Buy a certain stock before they do, because usually if a publicly run fund would buy certain shares, the price would go up,” Lin says. “They notify us first, and they would buy a few days later [for the fund], then they would come back to us to split the profit I make from buying at a lower price.” [Full Text]
[Image: Lin Rngshi via forbes.com]