Shares in the CSI 300 index quoted below RMB5 at the end of September have jumped 63% since, potentially reflecting a growing market impact of inexperienced retail investors in China, Bloomberg reported. That compares with a 35% gain for all index stocks and 11% for those priced above RMB50. New stock accounts are opening at the fastest pace since 2007 in China and individuals comprise about 80% of equity trading. While stocks priced below the equivalent of US$1 are often associated with tiny companies and market manipulation in the US, in China some of the biggest firms trade below that level.
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