China

Why China Is Prone to Bubbles

Government policy is driving money into asset class after asset class.

Enough cotton was traded on one day to make jeans for everyone on earth.

Source: STR/AFP/Getty Images

Chinese markets have rarely looked more like Vegas casinos. In recent weeks, investors have driven up trading volumes in China to astronomical levels, betting on everything from rebar to eggs. China traded enough steel in one day last month to build 178,082 Eiffel Towers and enough cotton to make at least one pair of jeans for every person on the planet.

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