How the Chinese stock market became a laughing stock

July 13, 2015 16:48
Apparently, the A-share suspension saga was a whole lot of nonsense but many netizens and investors found it amusing. Photo: HKEJ

Almost as soon as a government-driven spike in A shares came on Friday, more than 350 listed companies resumed trading or applied to be allowed to trade again.

That is about one-quarter of companies put on hold during the market sell-off in previous sessions.

We have just seen yet more evidence of how China manipulates the market.

But what is equally cringeworthy is how Chinese companies came up with all sorts of excuses to get their shares suspended to escape the carnage.

And when the market recovered, these same companies tripped over each other trying to get back in with all kinds of reasons.

Hareon Solar Technology sought a trading suspension at the height of the sell-off, citing “uncertainties of a major event”.

On Monday, the stock resumed trading after the company said those uncertainties were in fact just part of daily operations.

How clever. 

But it turns out some companies didn’t even care to mention any reason for wanting to resume trading.

For instance, Hisense Electric Co. Ltd. instead took the opportunity to introduce its latest ULED technology.

In an extreme case, a company said it suspended trading due to the disappearance of its chairman only to say later that she had been found, having just given birth and was doing well.

The announcement caught fire on Weibo but they are nowhere to found on the official websites of the Shanghai and Shenzhen exchanges.

Apparently, the A-share suspension saga was a whole lot of nonsense.

Many netizens and investors find these announcements amusing but the biggest joke is the stock market itself. 

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