China's Stock Market Soars to Record

Greenspan fears a dramatic correction
By NewsDude ,  Newser Staff
Posted May 28, 2007 8:17 PM CDT
An investor reads information on stocks with a magnifying glass at a stock exchange in Wuhan, China Monday May 21, 2007. Chinese stocks rose to a record close Wednesday for the third straight session...   (Associated Press)
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(Newser) – Despite Alan Greenspan’s warning that the market was due for a correction, Shanghai’s stock market index topped 4000 today. So far this year the Chinese stock market has doubled. Since 2006 it has quadrupled. The main driving force behind the surge has been an odd form of democracy.

Equity investing has spread widely from the traditional world of professional investors and businesspeople to include students and pensioners. Last week ordinary Chinese were opening stock market accounts at the rate of 300,000 a day, causing one wag to opine that “buying shares was the new Chinese national pastime.”