Managers in China more likely to sell gains, hold onto losses.
Managers in China tend to sell stocks for a profit but hold onto stocks that are losing value. They are more likely to sell small gains than small losses and are more willing to sell as gains increase and less willing to sell as losses increase. This behavior is not just due to rules about selling stocks as insiders but also reflects managers' desire to cash in on gains. Even though managers have more information about their companies, it doesn't completely counteract this tendency.