FAST FIVE: ChiNext Collapse Continues As China's "National Team" Abandons Investors

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After 10 straight days of dip-buying pandemonium in Chinese stock markets – extending gains for small caps from the start of February to +46%.

However, while ChiNext remains the world's best-performing equity market in 2019, Bloomberg reports that there have been hints that officials don't want a wild rally, and state media reported that the regulator warned brokers on risks of over-the-counter margin lending.

“This will certainly hurt the market,” Ken Chen, a Shanghai-based analyst with KGI Securities Co., said of insider selling.

“Many shareholders of listed firms are cash-strapped,” said Shen Zhengyang, a Shanghai-based strategist with Northeast Securities Co.

“Now with the stock gains, they can finally cut their holdings and use the money to repay loans.” Finally, Bloombergnotes that Further clues on the market's direction could come Friday, as focus turns to Premier Li Keqiang's press conference at the close of the annual National People's Congress in Beijing.

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