Rat warehouse refers to the banker's use of his own personal funds (heads of institutions, traders and their relatives and associates) to open positions at a low level before using public funds to raise the stock price. After Public Offering of Fund's high position, individual positions take the lead in selling for profit, which is a free-rider behavior.

Principle of good faith:

Building a "rat warehouse" violates the general principle of good faith of professional managers and is a serious professional ethics problem. Relatives and friends of brokers buy stocks at low prices in advance, and then the company opens positions to push up stocks. Therefore, the "rat warehouse" is not only risk-free, but also can obtain high returns. But it harms the interests of the company or fund holders, and may even lead to serious losses of the institutions it serves.

There is a serious "rat warehouse" problem in the Delong incident. It is said that the relatives of senior executives of a securities company who participated in the "rat warehouse" made nearly 10 million profits and all cashed out. However, the collapse of Delong's stock led to the closure of at least two securities companies, and many banks and other institutions lost tens of billions of yuan.