
The Fall of China’s Hedge-Fund King - againstodds
http://www.nytimes.com/2016/04/03/magazine/the-fall-of-chinas-hedge-fund-king.html
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seanmcdirmid
I submitted this article also, with less luck in the up vote game.

It is really a great read! If anyone wonders how screwed up the Chinese stock
market really is, this pretty much describe the core problems: it is basically
an insider market where those with connections and power (e.g. the
princelings) basically steal money away from naive and greedy retail investors
by pumping and dumping (even government aided!). Basically, exactly what we've
suspected all along!

The smart money attempts to ride the manipulated flows to profit, or just
stays out of it and plays in the less (but still) manipulated real estate
market.

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6stringmerc
> _The ubiquity of wrongdoing, he said, did not make anyone safe._

This is a great companion piece to the recently updated (and ongoing) back-
story with TrueCrypt. Lots of powerful people. The temptation of greed.
Fascinating read and culturally quite enlightening about how 'red capitalism'
seems to be working in this day and age. Worth the read.

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kombucha2
What article on TrueCrypt?

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kombucha2
Just found it...crazy..I was unaware of developments in the TrueCrypt story
let alone how long the US gov kept it in secret.

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rw2
Chinese investors are less educated in general. A lot of investors in the
venture space are actually just wealthy people without a high level of
education who is skeptical of the stock market. There is also a high level of
fraud in Chinese startups.

