Yep, China's equity markets are on a tear, as are Hong Kong's.
Adam had this yesterday: China has fallen in love with the stock market
And I spotted this a couple of weeks ago: China's Big Stock Market Rally Is Being Fueled by High-School Dropouts
Hong Kong is benefitting from the 'stock connect' scheme with China: Hong Kong stocks skyrocketing again
There is plenty of cash in China chasing these moves. While the PBOC's newly introduced liquidity tool (it began in September of 2014), the mid-term lending facility (MLF), is intended to provide funds for the real economy, you've got to wonder how much of it is leaking into financial markets, either directly or indirectly:
- The People’s Bank of China has injected 370 billion yuan of liquidity into banks via mid-term lending facility (MLF) in Q1
- Outstanding MLF to banks is at 1.0145 trillion yuan at Q1 end
- In addition, the standing lending facility (SLF) has injected just over 330bn yuan in Q1, bringing the balance to 170bn yuan
