Chinese Stocks at Five-Year High Are Only Just Getting Started
Nation’s major stock benchmarks are at overbought levels
Heated equity rally driven by investors’ fear of missing out
Greed is firmly back in China’s stock market.
Leverage in the nation’s equities is the highest since the wake of 2015’s epic bubble, turnover is surging, while the CSI 300 Index has jumped nearly 7% this week to hit a five-year high. All of China’s major stock benchmarks, from indexes tracking Shanghai’s giant state-owned firms to those that follow start ups in Shenzhen, are technically overbought.