The Boom Is Back in China Stocks, Depending Where You Look
- Traders boost Shenzhen margin debt for seven straight days
- The ChiNext Composite Index trades at 90 times profit
Is the Chinese Economy a House of Cards?
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The boom is back, at least for one part of China’s stock market.
Investors traded 5 billion shares on the ChiNext Composite Index on Oct. 16, more than at any point during this year’s rally. The Shenzhen gauge, dominated by small technology companies, is up 34 percent from its Sept. 15 low. Traders have borrowed extra debt to buy the city’s stocks for seven days straight.