Don’t look now but the Shanghai Composite is up over 15% in the last month. The S&P is up about 3% over the same period. Despite the correction in February the index is now up almost 30% for the year. And almost 150% over the last 12 months.

Can Shanghai stocks keep rising at this rate. Absolutely not. The last correction is sign enough that the Chinese market is subject to the same laws of gravity as all other markets are.

It’s just a matter of time.

Douglas A. McIntyre