Penny stocks glitter as bigger peers lose luster

Inexperienced, retail investors favor low-priced shares as the rally continues, reports Bloomberg.

As individual Chinese investors pour back into the world's hottest stock market, they are leaving their fingerprints all over the place. The most telltale sign: The Chinese equivalent of penny stocks, assets that have long held an allure for amateurs, are trouncing the benchmark index.

Shares in China's CSI 300 Index that were quoted below 5 yuan (81 cents) at the end of September have since jumped an average 63 percent. That compares with a 35 percent gain for all index stocks and 11 percent for those priced above 50 yuan.