I had a couple of posts up two days ago on the surge in the Chinese stock markets:

The Wall Street Journal overnight had this in the overnight: Chinese Stocks Take Off (gated)

  • China’s stocks are soaring as people scoop up investments in one of the world’s cheapest markets
  • Encouraged by signs Asia’s biggest economy has turned the corner and is starting to motor again
  • “People have given up on expecting China to collapse,” said Arnout van Rijn, Asia-Pacific chief investment officer at Robeco Group in Hong Kong, which manages assets worth $290 billion. Mr. van Rijn increased his exposure to Chinese stocks this year.
  • Sentiment has turned around
  • Government measures unveiled in the past month are spurring optimism the economy will rebound
  • Aided by overhauls aimed at debt-laden state-run enterprises
  • Banks are raising cash to help with bad loans

A very positive article, it doesn’t really mention the well-worn themes of debt build up etc.