In China, it's fear vs greed: Rally continues to raise stakes for traders

The battle between fear and greed is wreaking havoc in Chinese financial markets.

While China bulls are finally getting some vindication as the nation’s stocks and bonds rally, the past week shows investors need to be prepared for violent swings. Take Country Garden Holdings, the nation’s largest developer. On Monday, its 2024 bond plunged 10 cents on the dollar to trade like a stressed asset, only to surge by a record 14 cents two days later. The Hang Seng China Enterprises Index was down for five straight days before rallying the most since July on Thursday.

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