Can one person cause a crash? Well if there are enough people manipulating the market so they can profit then it's possible for them to cause a crash. For a while Chinese officials have been investigating the stock market crash and it looks like those who they believe were responsible are eventually going to pay for their "crimes." http://fortune.com/2015/11/02/china-arrests-another-market-guru-amid-probe-into-stock-debacle/ One of China’s most prominent private equity investors was arrested Sunday morning on suspicion of insider trading, the state-run news agency Xinhua said . . . from the beginning of this year through August 5, after Chinese stocks crashed 27% over a month and a half, one of his funds gained 357%, according to researcher Private Ranking Net, ranking top among 1,649 funds. Another one of his funds rose by 187%. More witch-hunting?
That is a sad news because China's stocks are still in the recovery period. That hedge funding gimmick is an old book so I wonder how those Lehman Brothers were able to do the trick. And now this Chinese hedge fund manager is also at it. You cannot be stupid with China because when you are caught, you are certain to be in the slammer for a long time. That hedge fund manager is sure to regret what he had done, why did it in China.
Rainman, the Chinese probe of market manipulation involves many people, not just one hedge fund manager. See the full thread and be sure to look at the three stories in the last entry. HTH. YMMV,
One person with too much power can do that. They can purposely make harm. Now, it's not a problem to sell everything if investors thinks it's the good strategy, even if it would put many companies under a questionable situation. So to make extra problems, this person must have done some kind of market manipulation, maybe have access to data they shouldn't have access to, or conflict of interests and the al. What matters here if that, if it happens, there must be ways to make it happening and some people left doors open. That's the basic problem and the thing we should focus on.
If you have enough money, a lot is possible in the market. Now if he was working with other people, he could really do some major damage.
He's not the first and won't be the last to be caught. It's good for the broader market that the authorities are finally cracking down on this kind of behavior. Any signs of graft or collusion will be cracked down on heavily. For this market to be fully open to international investors it has to be cleaned up. It's just part of the process.
