In a market that has seen its share prices crash more than 30 percent this year, the market has attracted some of the best analysts and investors in the country.
The China stock market has seen a major spike this year.
The price of Chinese stocks has jumped from an all-time low of about $4.30 per share in mid-June to a peak of $11.60.
China’s stock market is up about 70 percent this century.
And as the nation is undergoing rapid economic growth, the nation’s economy is expected to grow more than 3 percent this fiscal year.
China has a lot of upside potential for the rest of the year, said Stephen J. Chen, a China economist at the University of Michigan.
The economy is growing so fast, and China is not facing an acute recession, that the country is likely to expand its creditworthiness.
For the first time since 2005, Chinese companies are starting to report positive earnings and are expected to report earnings growth of 3 percent in the second quarter.
The country is forecast to record its first growth of 5.1 percent in 2018.
China is not going to be in recession any time soon, so the stock market could return to its normal growth trajectory, Chen said.
China also is not in a bubble, but China’s economy has grown at a rate of about 6 percent a year since the 1990s.
China’s stock prices are expected by analysts to grow 3.5 percent this financial year, up from 3.2 percent in 2017.
The stock market surge has been fueled by a surge in Chinese investment in renewable energy projects.
The Chinese government is boosting its share of renewable energy investments in 2017 and 2018.
Investors are increasingly taking risks, as the economy remains relatively weak and the Chinese government has limited the amount of foreign currency it can borrow to invest in its economy.
Investors are taking advantage of the strong U.S. dollar, which is expected by market analysts to remain weak in the long run.
China does not have a gold standard, but the yuan is pegged to the U.N. dollar.
The yuan is currently trading at about 70 to the dollar.
The Shanghai Composite Index is up 5.8 percent this month.
The S&P 500 is up 2.2.
The Nasdaq is up 4.2 and the Dow is up 3.9.
China was the first Asian nation to set up its own currency, the yuan, in 2003.
Its first sovereign bond was issued in 2015, but it is the only Asian nation that does not issue sovereign bonds.