Small and medium investors are piling into China’s stock bull market, putting aside the painful memories of the past. But they would do well to remember that the source of information for the average investors determines whether they'll make or lose money—and that those with connections in officialdom are always going to know more.
China’s stock market rally has been vigorously pushed forward by the regime, so it’s no surprise that fluctuations in the market can be traced back to information leaked to big players. Indeed, there seems to be a hierarchical order as to who gets key information and is able to monetize it. Average investors will never be able to compete with this.
First in the information hierarchy are the state-backed speculators and big financial institutions, who control enough money to really move the market. Besides hiring analysts to predict policy, these players rely on “public relations experts” to harvest information. Naturally, given that the market is heavily propped up by the authorities, they analyze meticulously the hand of regulators.
