Last week, all the action was in mainland Chinese stocks. This week the big story was in Hong Kong.
Investors boarded the ”through-train” connecting exchanges in Shanghai and Hong Kong, heading south to snap up relatively cheap stocks listed there. Volume records were set (paywall) two days in a row; the Hang Seng index is now the world’s largest by market capitalization, and the bourse that runs the Hong Kong Stock Exchange is again the world’s most valuable.
Short sellers might be licking their chops at the prospects of a sharp reversal, but it seems they’ll have to sit tight while the froth builds.