Here's the only picture you need to understand China's stock bull market that began in summer 2014. It is the stock chart of Baoding Tianwei Baobian Electric (600550), the first state-owned company to declare bankruptcy. Included is the Shanghai Composite for comparison.
Outside of some large companies with heavy institutional ownership, stock prices reflect psychology and not much else.
Here's a longer look at Baoding Tianwei. At the peak of the prior bull market, it traded for 14 times its price in 2001.
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