Chinese stocks performed really well this week. Again.
No, margin lending activity hasn’t really calmed down (paywall). And the People’s Bank of China cut the amount of reserves banks had to keep on hand, freeing up more capital to float around the economy. (Some of that is likely making its way into the equity markets.)
And no, investor demand isn’t calming down. In fact, China is supposedly expanding access for Taiwanese financial firms looking to buy into its A-share markets, which have traditionally been more or less off-limits to investors outside the mainland.. And no, the worries over a bubble haven’t quite subsided, though some observers are starting to argue that Shenzhen stocks rallying 60% in four months isn’t really all that crazy. But the momentum is still there, and China is once again sitting pretty among global markets.