Charlie Chen This is Me

 Web References

1. 1. A false dawn - why are China's A shares perking up? - FinanceAsia.com

   www.financeasia.com/articles/3 - [Cached]

   Published on: 5/9/2002   Last Visited: 5/9/2002

   After analysing the breakdown of the A-share free float in both the A-share market in Shanghai and in Shenzhen, Charlie Chen, then a Shanghai-based analyst for CLSA estimated last September that the underground funds held an incredible 30% of the free float, compared to just 4% by the legal funds.
   
   The underground fund management's size means it can easily corner the small free-float and play with the share price. The small free float is due to two thirds of the $500 billion A-share market cap being non-tradable shares owned by the government and government related entities.
   
   The government was initially keen to get back some of the money it has pumped into state enterprises, which make up 95% of listed companies and in which the government holds a stake of around 60%.
   
   The sell-off, never formally announced, but starting in 2001, involved the government selling a chunk of government-held shares through IPOs and rights issues.
   ...
   The small size of the official funds means that "underground funds are the almost the sole determinant of stock and market performance," according to Chen.
   
   These underground funds have a nefarious effect on the stock market since investors wanting to make as much as possible as quickly as possible abuse their power.
   
   These players can target certain shares and play with them like a tiger mauling a doll, buying up to 80% of the free float when they commence their operations.
   
   The target shares are easily spotted, since they tend to show high levels of volatility, far outperforming the overall index in a rising market and subsequently sharply correcting when the investors cash out. Reflecting the market's contempt for fundamentals, a large-cap with sound fundamentals could trade as low as 20x P/E, despite the overall market trading at 60x P/E, if it's not the target of share price manipulation.

2. 2. Muzi.com | LatelineNews : China Talks Tough on Bankruptcy in Market Reform Push

   www.latelinenews.com/ll/englis - [Cached]

   Published on: 2/23/2001   Last Visited: 4/26/2001

   ``It's bad news for Baiwen , '' said Charlie Chen , an analyst at CLSA Ltd. in Shanghai.
   
   The report coincides with a decision this week to scrap restrictions on local investors from trading foreign-currency B shares , a step that will boost otherwise lackluster trading. It comes as regulators step up a market crackdown in response to criticism it's been too slack in enforcing rules.