Colin Chen

China's Worst Bear Market

the obligated holding periods for many of the A-shares are ending, leading to large number of floating securities being loaded off. The chinese government will likely maintain control of the many operations, but its hard to deny the fact that there are more shares in the public hands than ever before. I agree with user that this is what is generating the downward pressure on the chinese stock market.

Adding to the fire is the allowance of some chinese domestic investors to seek better investment opportunities abroad (hong kong in particular) through the QDII program. Not even the most nationalistic chinese would place his money in a rigged opaque domestic market.