WMP Addicts See Shares Slump

Back in September there was a Chinese article detailing the listed companies who were the most aggressive buyers of WMPs.

IICS: Signs of a Credit Bubble: A-Shares Firms Loading Up on WMPs

I made a portfolio of the 10 largest buyers. Some were extremely large firms such as Shenhua Energy (500 billion yuan market cap) and some small, such as Changsheng Biotech (13 billion yuan market cap). Shenhua's purchase of 31 billion in WMPs (a 40 to 60 billion yuan annual pace depending on the date of the data) is heft next to its market capitalization, but Chansheng Biotech's $9.9 billion was on pace to equal or even exceed its market capitalization.

The portfolio underperformed the Shanghai Composite through Tuesday, down more than 5 percent versus a less than 2 percent decline in the Shanghai Composite.

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