'Regulators appear to be greenlighting speculative activities so as to prop up the stock market,' said Yuan Yuwei, fund manager at Water Wisdom Asset Management. Such stocks lend themselves to speculation, particularly when tied in some way to Chinese chip behemoth Huawei Technologies or hot concepts such as AI, making the retail rush somewhat similar to last year's meme-stock frenzy in the United States, albeit without short-sellers on the other side of the trades.Ĭhinese regulators meanwhile seem cool with the micro-cap craze, even though it is worryingly reminiscent of the casino-like Chinese market culture of more than a decade ago.
