ChiNext Analog: Rubber Hits the Road As Volume Surges

Bloomberg: The Boom Is Back in Chinese Stocks, Depending on Where You Look
Investors traded 5 billion shares on the ChiNext Composite Index on Oct. 16, more than at any point during this year’s rally. The Shenzhen gauge, dominated by small technology companies, is up 33 percent from its Sept. 15 low. Traders have borrowed extra debt to buy the city’s stocks for seven days straight.

The resurgence in appetite for China’s smallest, most volatile and most expensive equities contrasts with an almost-dead futures market and a more muted rebound in Shanghai, where volume remains less than half its peak. The world’s second-biggest economy expanded last quarter at the slowest pace since 2009, according to figures published on Monday.

"With macro indicators not looking great, investors are speculating that the government will roll out stimulus to help technology companies," said Steve Wang, chief China economist at Reorient Financial Markets Ltd. in Hong Kong. "They seem to believe it’s easier to flip small stocks for quick gains."

Here's the analog updated through this morning's 1% advance:

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