China’s Stock-Trading Craze Foreshadows Another Bullish Run

The rally that swept across China’s stock market a month ago may have cooled, but a slew of indicators suggests some investors are still betting on further gains.

The CSI 300 Index has largely been range-bound since an Oct. 8 peak, with an underwhelming fiscal stimulus and concerns over US President-elect Donald Trump’s confrontational stance toward China clouding the outlook. Short-term volatility is a third of what it was in the wake of the central bank’s stimulus blitz in late September, which spurred a 32% rally over two weeks.