China Stock Euphoria Takes Hold as Traders Overlook Deeper Woes

Chinese stock bulls have been burnt many times before but the current wave of euphoria is so strong that they’re throwing caution to the wind.

The CSI 300 Index has just capped its best week since November 2008, thanks to a barrage of monetary stimulus and vows from the Politburo to boost fiscal spending. Goldman Sachs Group Inc. says “this time is different,” lending support to an emerging view that the rally may prove more sustainable. Morgan Stanley sees another 10% upside.