Reads: LINK | LINK | LINK In recent days, Chinese authorities have been intervening into free market – suspending initial public, restricting bearish bets via stock-index futures, encouraging financial firms to buy shares and ordered state-run companies to maintain holdings in listed units. Some of the more drastic measures include at least allowing 1,331 companies to suspend the trading of their shares. This freezes $2.6 trillion of shares or roughly 40% of the country’s market capitalisation.

Commentary:

• We found the suspension of stocks ridiculous in some sense.  What is preventing investors from selling when these companies lift the trading halt? Moreover, how long could companies truly suspend their trading.

“It’s absurd,” said Tsutomu Yamada, a market analyst at Kabu.com Securities Co. in Tokyo. It shows how much of a fake market it is. Those who want to sell will keep wanting to sell. When they ...

...