Stockmarket mania comes to China again. Can it last this time?

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Chinese stocks have jumped by 15% during the past week, and are up by more than 30% from their low in March

IN CHINESE STOCKMARKET mythology, the rarest of beasts is the slow bull. The past couple of decades have brought two fast bulls: vertiginous surges in share prices, neither lasting more than a year. Those soon led to fast bears when stocks crashed and, eventually, to slow bears as the descent became more gradual.

For starters, China appears to be in better economic shape than other large economies. Because investors must allocate their funds somewhere, there is always a comparative element to market performance. China is the only big economy forecast to grow this year and is still expected to record the strongest rebound next year, according to IMF projections published in late June. There are grave concerns about the toll that the coronavirus might take in America during this autumn’s flu season.

Although more investors have started buying shares with borrowed money, the outstanding balance of such margin trading is just over half its peak five years ago, during China’s most recent manic run . It is now easier for companies to list shares on the mainland, so new offerings should absorb some of the cash rushing into the market. “This lays the foundation for a slow-bull market that could last for ten or 20 years,” said Chang Shishan of Kangzhuang, an asset-management firm.

 

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China 🇨🇳 is most dangerous Xi CCC

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It’s got room to run. BULLISH!

No. Colorful tackle.

Oh please...it's obviously an artificial state sanctioned play to pretend the National Security Law is a positive thing for Hong Kong, to save face.

Money ain't safe in the West so they are in China... Ironic isn't it...

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CCP is pumping

Isn’t USA stocks exhibiting same pattern?

Not hard to see, it is manufactured by CCP and it will be like 2015 all over again.

happens everytime before the crash

👎

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