The speculative fervor in China’s equity markets is spreading. The Shanghai Composite has cleared the 5000 mark after hovering just above 2000 around six months ago. This rally has been nothing short of spectacular.
The above edited excerpts (and the paraphrased comments below) come from the original article as posted on SoberLook.com under the title Unprecedented levels of activity in China’s equity markets and can be read in its entirety HERE (Sign up for our daily newsletter called the Daily Shot.)
HERE are some key trends related to:
- trading activity,
- new account openings,
- P/E ratio levels, and
- margin debt levels
that point to just how heated the market has become.
Bubbles can last for a long time, however, so unless Beijing interferes – and there is a strong possibility it will – this trend could last for a while. Of course the longer this goes on, the uglier things will get on the way down.
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