Chinese liquidity

The volume on the Shanghai stockmarket hit a two year high today at US$52.2bn. Meanwhile there in a new issue in Hong Kong listing on Wednesday called BBMG (with the lucky stock code of 2009 HK) which trades in building materials in China and supplied the cement for the Bird's Nest Stadium in Beijing. The retail portion of this issue was a whopping 775x oversubscribed. The company therefore retains the interest income on the US$60bn which was thrown at it: not insubtantial earnings!