he Shanghai Composite Index erased gains after climbing above...

he Shanghai Composite Index erased gains after climbing above 5000 points for the first time in seven years.
China's benchmark gauge is down 0.1 per cent to 4,941 at the 11:30am break, reversing an earlier 2.1 per cent advance, with volume 47 per cent above the 30-day average for this time of day.
"The scale and speed of these gains scream 'speculative bubble'," Richard Iley at BNP Paribas told the FT, as the latest advance took year-to-date gains in Shanghai to 53 per cent.
The tech-heavy Shenzhen Composite also conducted a rapid u-turn in this morning's trade, and is now down 0.1 per cent for a year-to-date gain of 113 per cent.
Unnerving volatility is a feature of Chinese stocks. The Shanghai exchange suffered a 10 per cent drop in less than 24 hours earlier this week, only to climb and test new highs.
Jing Ning, portfolio manager of the Fidelity China Fund, said that "corrections like these are not a surprise to us given how fast the A-share market has rallied."

"The Chinese government wants a strong equity market to aid wealth creation andenable corporates to restructure their balance sheets by issuing equity to pay down debt," Jing said.
"However, it does not want a bubble that bursts in a way that puts off another generation of equity investors. This is a hard line to walk, but we can expect the regulator to take action to take the heat out of the market whenever it feels it is getting too frothy.

smh.com.au

I wish our Govt can encourage such behavior  and Treasurer Joe did tell us to go out there and spend didn't he recently? I wonder if he also meant we margin loaned into Syd/Mel property prices to make a quick buck? A sort of reverse Chinese approach where our spending creates additional revenues for the industries to inflate more valuation.