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Business China

Shanghai Composite Index 8000 ?

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You know I am kidding, do you? We all know the bubble is there, but how much bubble do we got? Is bubble going to burst very soon? These are the questions the investors (more accurately speculators) in China should ask.

In my mind, there are fundamental reasons for this rising of Chinese equity values: over liquidity (too much money, too little stocks); improvement of company fundamentals including rapid growth; Gu Gai (the stock reform which remove cloud from the floating shares), etc.