Hidden Dragon

ASIA REPORT

For five years, starting in 2001, the Chinese stock market headed down. Investors pulled out their money; brokerages went bankrupt. Then the Chinese government instituted a series of far-reaching reforms and the market started to rebound, quickly regaining the territory it had lost, and hitting record highs.

That was the good news, but rising trading volumes, tighter regulations, new securities products and the threat of competition from tech-savvy foreign firms are pressuring Chinese brokerages

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