Lately, China’s President Xi Jinping is sounding more like a fervent capitalist than the leader of the largest communist country in the world. In early July 2020, his government published an editorial in the state-owned China Securities Journal extolling the merits of the ‘wealth effects of the capital markets’ and the potential for a bull market. Individual investors appeared to have heard the call loud and clear. The Shanghai Composite Index jumped 5.7% in the first day of trading following the article’s debut.
The Shanghai Composite Index represents a RMB 32.7 trillion (US$4.7 trillion) in