(Preview) Stock Frenzy In China Stokes Official Concern

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Stock Frenzy In China Stokes Official Concern

By James T. Areddy
Word Count: 1,188 | Companies Featured in This Article: China Construction Bank
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As China's stock market continues its record-breaking rally, regulators are increasingly expressing concern that the country's growing ranks of investors are doing everything from mortgaging their homes to borrowing against their credit cards to get in on the action.

China's stock-market benchmark, the Shanghai Composite Index, rose 130% in 2006 and has continued to soar this year, placing Chinese stocks among the world's top performers. Yesterday, the index gained 2.2% to 2945.26.

In a frenzy that recalls the late-1990s dot-com boom in the U.S., the rally has drawn in a new generation of investors. Online trading is spreading rapidly, and ...