Over 300k people are opening brokerage accounts every day in China and driving the most recent market surge, pushing Shanghai’s CSI 300 past the 4,000 mark. The index has quadrupled since 2006 and doubled since the start of this year, although Greenspan is wary of the bubble buzz, and warned of a possible dramatic correction last week. According to the BBC:
One of the main factors behind the surge in shares has been a willingness among ordinary people, such as students and pensioners, as well as investors and businesspeople, to buy shares [so …the main factor in the surge in shares has been that people are buying shares…insight does not grow on trees kids]. Instead of leaving their savings in bank accounts [or continuing to serve as human coffee tables], many people are now using the cash to buy shares in the hope of receiving better returns [and buying back female offspring from rural villages].
China's stock market hits record [BBC via Fintag]