Bourses in China eclipse all of Asia

almost on a daily basis a new breathtaking (bubble) statistic........

mir kommt es fast so vor als wenn täglich neue atemberaubende statistiken aus dem reich der mitte kommen die einen nur noch den kopf schütteln lassen. neuer markt lässt grüssen......


The value of shares traded on China’s stock markets on Wednesday was greater than the rest of Asia combined – including Japan – helping the benchmark index to breach the 4,000 mark for the first time......

The stocks extended their strong gains on Thursday despite growing concerns over asset bubbles, with the Shanghai Composite Index rising another 0.9 per cent to end at 4,049.7. Trading volumes remained heavy, $26.5bn A shares changing hands, but moved at a slightly slower pace than on Wednesday....

As recently as March 30, trading volume on the Chinese markets was $16.4bn, while six months ago it was only $5bn a day.

Wednesday’s figure of $49bn was nearly double Japan’s $26.9bn turnover, and triple the $16.5bn combined trading volume of Australia, Hong Kong, Thailand, Singapore, Malaysia, Korea, India, Taiwan, Indonesia, New Zealand and Vietnam. It was still less than half Tuesday’s $122bn trading volume in the US, but well above London’s $29.4bn on Tuesday.......


After such a sustained bull run even the most sober-minded are saying the market can continue to rise in spite of prices that are more than 50 times earnings.

One reason is the Rmb20,000bn or so in personal financial assets held by individuals in low-yielding bonds and bank accounts earning less than 3 per cent interest.

With inflation now above 3 per cent in China, negative real returns offered by bank deposits are helping fuel the stock frenzy.......

While the Chinese market is now the world’s second-largest in terms of turnover, it is still less than half the size of Japan’s in terms of market capitalisation, with Shenzhen and Shanghai boasting a combined $2,200bn compared to Japan’s $4,700bn, the UK’s near-$4,000bn and the US’s $16,500bn.

The main beneficiaries are China’s previously bankrupt securities brokerages, many of which had to be bailed out by the government only two years ago.