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NOT SO SHEEPISH THIS YEAR

The Chinese stock market gold rush continued this week

Investors listen to a lecture in front of an electronic board showing stock information at a brokerage house in Shanghai January 27, 2010. China's key stock index slipped 1.09 percent to a three-month closing low on Wednesday, with bank shares weaker on concerns over tightening liquidity despite upbeat earnings estimates from two major lenders. REUTERS/Stringer
Reuters
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This article is more than 2 years old.

China’s stock market is on fire this year. It’s up more than 47% in just a few short months; that includes a 7.5% surge in the last week alone, making it a standout in world markets.

That’s the kind of eye-popping performance that invites lots of skepticism, and there’s no shortage of that.

Quartz has noted that:

The research firm Capital Economics, in a note to clients, suggests that a big chunk of the action is coming from the People’s Bank of China, which has been cutting benchmark interest rates to spur investment amid an ongoing economic slowdown.

And since things aren’t exactly peachy just yet, the firm said to expect more easing to come. Whether that will translate into a longer rally is another question.

📬 Kick off each morning with coffee and the Daily Brief (BYO coffee).

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