Tuesday, July 14, 2009

According to Didier Sornette, et. al.: Chinese Equity Bubble: Ready to Burst

July 10, 2009

Amid the current financial crisis, there has been one equity index beating all others: the Shanghai Composite. Our analysis of this main Chinese equity index shows clear signatures of a bubble build up and we go on to predict its most likely crash date: July 17-27, 2009 (20%/80% quantile confidence interval).

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