We’ve said it before and we’ll say it again: China’s equity mania truly is the gift that keeps on giving, and not just for those who are riding the wave, but also for those who, like us, appreciate the humor in a giant, margin-fueled bubble that’s captivated millions upon millions of semi-literate housewives and banana vendors turned day traders.
While there are some signs that the bubble in Chinese stocks may be set to peak — such as brokers looking to curb margin trading — rest assured that the PBoC is on the case, cutting policy rates twice in a month in an effort to ensure the country’s stock market miracle continues to overshadow a bursting real estate bubble and a decelerating economy in the minds of Chinese investors.
One area that’s been particularly hot this year is the Chinese IPO market, which has spawned companies like the now famous Beijing Baoefung Technology which, until Thursday, had traded limit-up every single day since its March IPO. Here to shed some light on just how ridiculous the IPO market in China has become is Morgan Stanley:
