Greed Makes a Comeback in China as Hot New Trade Sparks 5% Rally

Greed is once again trumping fear in the Chinese stock market.

The Shanghai Composite Index surged 4.9 percent on Monday, posting the broadest rally in at least 17 years on speculation that China will start a new round of consolidation among state-owned companies. Investors snapped up shares even as export and producer-price data signaled economic growth is getting weaker.