Chinese stocks are staging a huge rally.
And one company — China Construction Bank — is now larger than JPMorgan and Facebook, according to the FT’s Josh Noble.
Noble notes that the bank’s shares have risen 20% in the past month, giving it a market capitalisation of $US248 billion.
It’s the third largest bank on the FTSE All World Index, only behind China-based ICBC and Wells Fargo.
Earlier Monday, we highlighted comments from Ed Yardeni’s morning briefing on how demand for Chinese stocks is surging. Yardeni notes that on Wednesday, Chinese investors used up the daily investment quota worth (1.69 billion) for buying Hong Kong stocks for the first time, helping the exchange reach record volume.
And according to the FT, investors are pouring money into the Hong Kong exchange because of concerns that stocks listed in Shanghai and Shenzhen are overvalued.
On Monday, Hong Kong’s Hang Seng index surged above 28,000 for the first time since late 2007.
Here’s a chart showing the rally in shares of China Construction Bank:
And the Hang Seng Index: