China's Siren Song Of Speculation

China’s Siren Song Of Speculation by Cook & Bynum As China’s stock market continues to rise, the siren song of speculation is proving too much to resist for many in China.  Using debt in a variety of forms (beyond just typical margin loans), corporations are piling in – for many manufacturing concerns, the overwhelming majority of recent profit growth is attributable to gains in investment portfolios.  Given the type of participants and the huge amounts of leverage in place, a correction could create a cascade that is disruptive to all parts of China’s capital markets. Take Dong Jun, who earlier this…