As a former Chinese btc trader, I can share something for you.
- Do chinese exchanges have 0% trading fee, leading to more frequent trades? Yes, and many bots trading there.
- Are there more CNY traders than USD traders? No, I estimate less than Chinese 10k traders are active. US has more traders.
- Are trading volumes reported inaccurately? If so, is there any point in doing so, will it attract more traders? What if the fake volumes are exposed, will it damage the reputation of the exchange with decreased real trade volumes as a result?
Yeah, some of Chinese exchanges fake the trading volume, and most of the volume is traded by bots or platform itself. Reputation? They don't need it, they just wanna your money, they are all greedy bastards, they lend the loan to people with very high rates.
Some biggest exchanges like huobi and okcoin has venture capitals. So that's why they need to fake volumes, to make money from venture capitals, is it clear?