No Bounds for China's Stock Frenzy

The government's efforts to dampen demand have done little to slow the momentum of mainland markets, as the CSI 300 index has soared 185% this year

Chinese investors have taken irrational exuberance to entirely new levels. On Oct. 15, the Shanghai Stock Index blasted through the 6000-point mark, and closed at 6337 on Oct. 17, up an astonishing 125% since the beginning of the year. The broader CSI 300 index of the top Shanghai- and Shenzhen-listed companies is up 185% and shows no signs of slowing. "It's totally out of control," says Carl Walter, a managing director at JPMorgan (JPM) in Beijing who co-authored a book, titled Privatizing China, about mainland stock markets.

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