Chinese shares: super-bull on the loose
Chinese shares: super-bull on the loose. Bull market does not adequately describe the frenzied buying of Chinese stocks in the past two weeks, so local media have started calling it a super-bull. But with the stockmarket having surged 20% in ten trading days, the beast is rampaging into dangerous territory. There are good reasons for a rally: the central bank has pumped cash into the economy; a new trading link with Hong Kong has brought extra fund flows to Shanghai; and stocks looked reasonably cheap after a long, bad run. But all this is reminiscent of an even giddier climb in 2006-07-before the market crashed. Television newscasts are full of excited reports; pensioners crowd into stockbrokers' offices to swap their savings for shares; online chat-rooms buzz with advice about which stocks to pick. If the super-bull does not slow down, investors could well be gored once again.