Huge gains in Chinese equities markets may make huge risks

Updated

The Shanghai Composite, the major stock index in China, is up 68 percent this year. The Dow Jones Industrial Average is off 5 percent.

China's economy may still be expanding at a 7 percent rate, but the risks to the growth are considerable. China is relying on a $585 billion stimulus package to prime the pump of consumer spending. The money is also going toward mammoth infrastructure projects. At some point, all of the investment capital runs out.

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