Abstract: Investigative journalism has uncovered that behind these stocks, there often lies a professional trading team manipulating the market. They continuously release positive news and concentrate on driving up stock prices for a period, leading retail investors to believe there are profits to be made and rush to enter the market. Particularly for stocks aiming to be included in various Hong Kong market indices and the Hong Kong Stock Connect, the stock prices are driven up to ‘enter the connect’, and after entering, major shareholders quickly sell off their holdings and cash out.
Some Hong Kong stock investment institutions suggest: In addition to controlling the quality of newly listed stocks in Hong Kong at the source, for southbound funds, understanding the tactics of the market manipulators can also help avoid falling into traps and enhance investors’ ability to avoid pitfalls.
