Experts tread on Web-based sneaker trade

Speculators are also suffering losses. In Jiangsu province, more than 40 people were reported to have lost 6 million yuan earlier this month engaging in sneaker futures.

Li Shangze, a lawyer at Tahota Law Firm in Shenzhen, said the rise of sneaker speculation reflects the scarcity of high-quality financial products with high rates of return on the market.

Against the backdrop of a sluggish stock market, bankruptcy of P2P institutions and tightening asset management regulations, investment demand among investors - mainly young people - cannot be met. So, they turn to the subcultural field, which lacks regulation, Li said.

Liu Guohong, director of the Finance and Modern Industry Research Center at Shenzhen-based think tank China Development Institute, said the appearance of such manipulation is normal in an immature and incomplete market.

"Its essence is to artificially create an atmosphere of 'scarcity', push up prices and make high profits by taking advantage of information asymmetry," he said.

"The speculation will certainly break market rules and deal a blow to normal market order, leading to the economic loss of some consumers over a period of time. But if its scope is not wide and its spread is not fast, there is no need to over-interpret it. There is also no need for the government to directly intervene in it."

What regulators need to do is to ensure transparent information disclosure and forbid monopoly and unfair competition to provide a sound market environment, Liu added.