WOLF KING of CHINA: LOOK FOR STOCKS WITH MANIPULATORS

If you want to suck on some soup, you invest the old fashioned way. However, in China, if you want to eat meat, you learn to manipulate stocks.

PREASE PAY ME ONE THOUSAND DORRARS FOR THIS RESSON.

“We need to dance with the wolves,” says Liu, the chief executive officer at Qingdao Langwang Investment Consulting Co., a producer of online video seminars for stock investors in China’s eastern Shandong province.

For a one-time payment of 6,800 yuan ($1,050), Liu’s firm provides a crash course on stock manipulators in China: how to anticipate their targets, how to spot their trades and — most importantly — how to profit by following in their tracks. The three-month class is one of at least 100 across the country that promise insight into Zhuang Jia, a local term for market manipulators that portrays them as holding the upper hand.

“If you want to make a quick buck from the stock market, you’d better look for stocks with manipulators,” explains Chen Yifeng, a 37-year-old accountant at a state-owned company in Shanghai who has about 100,000 yuan of his personal portfolio invested in local shares. “You just need to pull out faster than them.”

Of course, not all individual investors in China are chasing after manipulated stocks. Zhang Kai, a 27-year-old consultant at a financial firm in Beijing, sold his personal equity holdings in June in part because he thinks amateur traders will struggle to make much money in shares where Zhuang Jia are active.

“It’s possible for individual investors to enjoy some soup if they follow the Zhuang Jia, but they can never eat the meat in the end,” he said.

 

Changing investor attitudes will be difficult. While the CSRC says its public announcements on manipulation fines and investigations help educate investors on the dangers of Zhuang Jia, a search on online bookstore Dangdang.com returns more than 200 titles on how to find, follow and ride the coattails of stock-market manipulators.

 

At Langwang, the investment seminar firm whose name translates to “wolf king,” students learn to track rapid price and volume changes that deviate from the broader stock market. Those are tell-tale signs of manipulation, according to Liu, the firm’s CEO. He says the best way to piggy-back on the gains is by building a “trial” position with a stop-loss order designed to limit damage if the stock reverses. If it rallies at least 5 percent, Liu suggests adding to the position.

 

“Stocks backed by major players and manipulators tend to perform much stronger,” Liu said. “The regulatory crackdown will certainly have some impact, but market manipulation will continue. It’s inevitable.”

That’s some bullshit right there. For those of you looking for EM exposure, I strongly advise you to steer clear of these “wolf kings” and buy anything else instead. The Chinese government is trying to crack down on these lunatics, en masse, which is part of the reason why their economy is in the shitter. Look at what anti-corruption measures have done to Macau. It’s a delicate game to be played and I am almost certain the Chinese aren’t ready to play it with elegance.