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Shanghai stocks' pre-rate-cut rally draws suspicions of insider trading

An unusual rally among Shanghai-listed stocks just before China’s central bank cut interest rates late Friday has prompted suspicions of insider trading among some investors, The Wall Street Journal reported. Shanghai’s benchmark index started the Friday morning session virtually flat, but after the midday break climbed 1.4% to just shy of its three-year high despite a lack of substantial market-moving news. Trading volume jumped 31% from the previous day. Stocks in brokerages and property developers, which would be among the winners from eased monetary policy, were among the biggest movers Friday.

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