&gt; or the assertion that there aren&#x27;t pension funds and ETF funds willing and able to put 100&#x27;s of billions of money into the market?<p>Based on your HN profile, you are 10000x more qualified than me on this subject, but I would like to see some evidence to back up the claim that the shanghai stock exchange has no pension funds trading large volumes of equities over long time horizons.<p>According to the wikipedia chronology of the Shanghai Stock Exchange [1], an influx of speculators did not enter the market until 2006-2007, following the &quot;unbanning&quot; of IPO&#x27;s. Presumably the implication is that prior to speculators entering the market, most trades were executed by large institutional investors.<p>If these institutional investors are not trading on long time horizons (like a pension fund would), then who are they, where does their funding come from, and for what purpose do they use the exchange?<p>[1] <a href="https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;Shanghai_Stock_Exchange#Chronology" rel="nofollow">https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;Shanghai_Stock_Exchange#Chrono...</a>