The China stock market is breaking new high again, after the May 30 “man made” crash, and amid the “housing and financial crash” in the US. Yesterday I heard from a family member, who was fairly cautious about the stock market, now thinking about put the money back to the market. This is confirmed by the warming up of “new account” opening in Shanghai and Shenzhen. After the raise of stamp tax, the interest rate, and bank reserve rate, the fearless Chinese stock investors (especially institutions) pushed blue chips such as China Merchants Bank, Vanke to their new high.
The million dollar question is: can this rally be sustained? Well, I will let the analysts and experts to comment on this. My job is provide the facts. In the weekend I saw a new newspaper named “Li Cai Zhou Bao“, or “financial weekly”, interestingly it’s being translated to “Smart Money”. Curious about its content, I shelled out 6 Yuan and got a copy. This is a title of No. 1 article “The stock most likely will go up to 100 in no time“. Well, I remember couple weeks ago, Cramer did this “80 to 120” series on his mad money, we all know what happened after his show (hint: Dow crash).