Market Maker, by Gady Epstein

Good article on the shenanigans that pervade the Chinese stock markets. 内幕交易, 老鼠仓, and 股价操纵 are the terms to know.

“Regulators acknowledge front-running to be a widespread problem, but virtually nobody gets caught. The only exception in the last two years proves the rule. Shanghai fund manager Tang Jian, fired last May from China International Fund Management, a joint venture between JPMorgan Fleming and a Shanghai securities company, had raised just about every red flag possible to bring about his own downfall. According to state media reports, within months of taking over a stock fund in 2006, he complained about his salary in an e-mail at work, talked about front-running on firm-monitored telephone calls, opened a trading account with his father’s government identity card, bought an expensive home and a BMW, divorced his wife and ran off with an office intern on a quickie honeymoon to Brisbane, Australia.”

I estimate that around three out of four BMWs on the streets here have been acquired after their owners engaged in similar operations. Did the intern get to keep her (no doubt white) Beemer?