'Shoe-shine boys are tipping stocks again' – this time in China

Ordinary investors in China are piling in to the country's stockmarket, sending Chinese stocks on an epic bull run.

Chinese stocks are in a "bull run of epic proportions", says The Economist. Despite a nasty stumble last week, which saw the Shanghai Composite index plunge by 6.5% in one day, the market is still up by 135% in 12 months, and 40% this year. The market in Shenzhen, skewed towards technology companies, has doubled since January.

ChiNext, an index for start-ups, is up by more than 150%. The Chinese market "has often been called a casino", with share prices "bearing little connection with economic reality", but thegap between stock prices andthe fundamentals "has reachednew extremes".

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Andrew Van Sickle
Editor, MoneyWeek

Andrew is the editor of MoneyWeek magazine. He grew up in Vienna and studied at the University of St Andrews, where he gained a first-class MA in geography & international relations.

After graduating he began to contribute to the foreign page of The Week and soon afterwards joined MoneyWeek at its inception in October 2000. He helped Merryn Somerset Webb establish it as Britain’s best-selling financial magazine, contributing to every section of the publication and specialising in macroeconomics and stockmarkets, before going part-time.

His freelance projects have included a 2009 relaunch of The Pharma Letter, where he covered corporate news and political developments in the German pharmaceuticals market for two years, and a multiyear stint as deputy editor of the Barclays account at Redwood, a marketing agency.

Andrew has been editing MoneyWeek since 2018, and continues to specialise in investment and news in German-speaking countries owing to his fluent command of the language.