China Stocks Are Trouncing the World Again as Bubble Angst Fades
- Margin debt, volumes are picking up as Shanghai shares advance
- President Xi Jinping sees a market in `self-recovery' mode
The Shanghai Stock Exchange building in Shanghai, China.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
Less than five months after China’s equity bubble burst, the Shanghai Composite Index is surging once again.
This month’s 11 percent rebound is one of the biggest surprises in global markets after international money managers all but gave up on Chinese stocks in the wake of a $5 trillion crash, according to JPMorgan Chase & Co. What’s even more remarkable is that the gains look like the result of buying from ordinary investors, rather than the government-run funds who sought to prop up prices during the rout.