The Rising Influence of Rising Affluence

[ilpapa]

I've been pretty optimistic about the ability of the Chinese to manage their way out of their bubble, but this is of concern on its face

FT

China's capital rush: More capital has been raised this year than in the past three combined and more than half the $14bn proceeds are being ploughed straight back into financing the same equity boom that enabled them to tap the markets in the first place. The frenzied rallies in Shanghai and Shenzhen this year have largely been fuelled by margin lending where loans to invest in the market are secured against the stocks purchased. (FT)