China’s stock market was on a roll – is it a boom or bubble?

The China Stock Market has witnessed a sharp gathering this year as a progress in artificial cracking, which is steps aimed at obtaining self -sufficiency of chips and Beijing campaign to curb between price wars in investor optimism in fuel.

But with retail investors pushing the market above, the bulls chanted Support of liquidity Political halls, some experts raise questions if the market is entering the bubble area.

The CSI 300 is about 16 % since the beginning of the year and is hovering near more than three years. The CSI 300 Information Technology Index, which measures the performance of technology companies within CSI 300, has achieved last week its highest level since 2015.

“Retaus investors played a major role because they converted some of their bank deposits to stock markets.”

Retail investors dominate the wild stock markets in China, representing about 90 % of daily trading, according to HSBC data. This is a sharp contradiction with the main global stock exchanges, where institutions lead activity – on the New York Stock Exchange, for example, individual investors are only 20 % – 25 % of trading volume.

Chinese home savings are currently standing More than 160 trillion yuan ($ 22 trillion)High record, according to HSBC. but, Only 5 % Analysts told CNBC that it is allocated to stocks, which means that there is room for retail sharing, especially since deposit rates are located and property is still unable.

The economic slowdown in China increased in August as a series of The main indicators are not less than expectations. The continuous and weak local demand and Beijing’s efforts to reduce the increased industrial ability weighing on production.

The industrial product increased by 5.2 % last month, eliminating 5.7 % growth in July and putting signs on the weakest pace since August 2024. Retail sales have grown by 3.4 % on an annual basis, less than the expectations of analysts by 3.9 % in a survey of Reuters and slowed out of 3.7 % growth July.

“Until now, we have not signed a shift in the total basics, although the current momentum may be supported by the expectations of structural improvements in the economy,” said Choubing Zhou, Global Market Expert in JP MORGAN Asset Management.

Semi-annual reports indicate that some stability in sectors such as artificial intelligence, semi-conductors and renewable hardware, and pushing the “control of the revolution” in Beijing-which aims to curb in price wars-can improve the capacity of corporate profits.

For example, Chinese chip maker Cambricon reported record profits in the first half of the year, where more than 4000 % jumped yearly on an annual basis to 2.88 billion yuan (402.7 million dollars) in the first six months, while highlighting the increasing momentum of local chip companies as Beijing pushes to strengthen it to their locality.

However, ZHU warns that technological assessments may be “pricing with very optimistic expectations”, making the market vulnerable to clouds before catching up profits.