From Bloomberg:
China’s CSI 300 Index rose above 4000 for the first time, driven by a surge in new investors who are ignoring warnings of a bubble to enter a market that’s doubled this year.
The value of shares traded on the Shanghai and Shenzhen stock exchanges was a record $50.9 billion, exceeding the $43.9 billion that changed hands on the New York Stock Exchange on May 25. U.S. markets are shut today for the Memorial Day holiday.
“There is lots of liquidity flowing into the market,” said Fan Dizhao, who helps manage about $1.8 billion at Guotai Asset Management Co. in Shanghai. “Even fund mangers dare not sell their shares at this stage, as no one knows when the rally will be over.” [Full Text]
See also China has stock ‘bubble’ by Li Ka-shing.
