Local investors are pouring into Chinese stock market as the index has broken above 5000 mark.
- An Interesting photograph came to notice, a seller while selling banana in his wooden curt is keeping a small laptop open watching charts and betting on the market.
- In another instance a local retail investors said he has only about 200,000 Yuan left in his bank account rest Yuan 20 million he has poured into the market.
China's benchmark stock index CSI 300 is currently trading at 5166, up 0.9% today and 152% in last 12 month.
With such massive rally investors are just pouring in to the stock market especially the retail segment. This month new account opened as shown in the chart has hit new record with 4.4 million accounts opening in a week.
Margin debt has skyrocketed now stands at 3.5% of GDP. Stock market capitalization touched $10 trillion.
It can't be said that the equity market is about to bust now, however risk of a bust is certainly going up and more concerning is such a bust would have very detrimental effect on Economy and people's psyche.


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