The Bulls Stampede In China

Mainland investors are taking irrational exuberance to new heights. On October 15, the Shanghai Stock Index blasted through the 6,000-point mark and closed at 6337 on October 17, up a dizzying 125% since the beginning of the year.

The broader CSI 300 index of top Shanghai and Shenzhen-listed companies is up 185%. Meanwhile, a Beijing official has confirmed that state-owned China Citic Group is seeking to take an unspecified stake in Bear Stearns.

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