In a followup post, the folks at FT Alphaville said this about China's equity markets:
Of course, as the FT’s Josh Noble says, there’s still room for this to run. Politics and momentum are powerful forces. Per Josh, “this market rally has something going for it that previous bull runs have not — central government support.” Whether that support exists separately to the need to prop up growth rates… who knows. For now it doesn’t really seem to matter — the Shanghai Composite was up 1.5 per cent, taking its gains for the year so far to nearly 32 per cent and you can’t knock the greater fool theory while it’s working.
And as someone who generally knows what they’re talking about said to us recently (and we are paraphrasing a bit since we didn’t take it down at the time): “Oh, for sure. It’s going to be an absolute disaster. The government has no idea what it’s doing. But in the meantime, lots of money to make!” Seems about right.