Experts tread on Web-based sneaker trade

It urged relevant departments to pay close attention to the phenomenon and take effective measures to prevent underlying risks.

Regulators in Shenzhen have also noticed the trend and are taking preventive measures.

The Shenzhen Municipal Financial Regulatory Bureau said it began carrying out investigations in early October into operators running related businesses as well as the financial institutions that provide lending services for the industry.

"We have already spotted some organizations and are still investigating others," the bureau said. "Complete investigation results and conclusions will be made available."

There are currently more than 10 online platforms across the country running sneaker speculation businesses. "You don't even need to have sneakers on hand," said Liu Zizhuo, a sneaker lover in Shenzhen. "With only a click of a button, you can buy a pair of sneakers. Then you deposit them on the platform, and then you can sell them and make a profit from the price difference.

"Speculators in WeChat groups also discuss which specific item they want to focus on. Then, they all rush in to buy it and push up the price."

As a recent example, prices of a pair of Air Jordan 1 Satin Black Toe, which originally stood at 1,299 yuan, went for as high as 12,000 yuan, according to a media report.

Shino Liu, chief executive officer and founder of sneaker trade app TheParks, said more than 80 percent of the traders on those platforms are speculators.

To prevent people from engaging in speculation on his platform, Liu introduced a set of rules. When the platform spots unusual purchasing behavior - for example, a request to buy 10 pairs of the same shoes at a time - it will only allow the buyer to buy one pair and reject the other nine purchases.

"The market has been distorted," Liu said. "It's more like stock trading. Real sneakerheads have become victims of the manipulation."