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China regulators cracking down on gains from reverse mergers

Friday, July 15, 2016 - 05:50

An investor who bought stakes in the nation's 10 smallest listed companies at the beginning of the year, sold them after 12 months and repeated the process would have taken home an annualised return of 57 per cent in the 10 years through the start of 2016.

Hong Kong

ONE of China's most unusual, and lucrative, investment strategies is coming under fire as policy-makers crack down on a stock-market anomaly that they helped create.

The strategy's simplicity - and effectiveness in exploiting the unintended consequences of state meddling

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