Chinese turbine maker Sinovel Wind Group Co has gone through three presidents in two years. The company's revolving door within its upper ranks is typical in China, where senior executives are frequently motivated by get-rich-quick mentalities.
Unscrupulous managers usually start or join a company, take it public, then short sell all their shares after the lock-out period expires. Once they score off the market, their days with the company are usually numbered.
Such behaviors aren't illegal; but once executives dump their holdings and the company's share price plummets, investors are usually the ones left holding the bag. If allowed to go unchecked, it's flagrant moves like this which will be the ruin of the A-share market.
Regulators should encourage top-level managers at publicly-traded firms to stay longer with their companies. And if anyone is caught abusing China's listing regulations, they should be banned from holding managerial positions at listed companies in the future.
The author is Zhou Kejing, a commentator.