ABSTRACT
It is a hotspot of debate about the development of Chinese Stock Market among economists in China. The debating became more furious since the Caijing (Finance and Economy) magazine disclosed in October 2000 some inside stories of mutual funds, which told us how the mutual funds manipulated stock prices and cheated investors. Some famous Chinese economists, such as Wu Jinglian, Li Yining, Xiao Zhuoji, Dong Fureng, Xu Xiaonian, Justine Yifu Lin1 and Zhang Weiying, held a serious debate2 about the role of stock market, speculation, bubbles, high P/E ratio, ‘banker’ behaviors and the regulation of Chinese stock market. Despite they held different opinions, no one denied the fact that stock price manipulations of ‘bankers’ had extensive and important impact on stock pricing.
