posted at 00:50
Author Name: Mike Bird
Shanghai Stocks Reach Top
Shanghai's stock exchange is booming again, but for how long? Bloomberg is taking a pretty dim view of the sudden upswing for mainland China's biggest financial centre. The Shanghai stock exchange composite index was down for the year to date, until September. It's some way off a record levels, having peaked at over 6,000 before the global financial crisis hit a few years ago. "It's a good chance we're at a market top right now," David Cui, the China strategist at Bank of America, who's ranked No. 1 by Institutional Investor magazine, said by phone yesterday. "Based on the experience since the global financial crisis, surging volumes each time marked a temporary top for the market." Jumps in trading may signal market peaks because they reflect too much investor "Euphoria" toward stocks, according to Cui. Growth has fallen from the double-digit levels that were common before the financial crisis, but not everyone is pessimistic. "At least for the near term, the market should continue to edge up."

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