Any measures of volatility being used to track chinese market? Chinese market can continue to rally, the only thing that can stop it is profits dwindling or a tax measure instituted by the government. And profits are being fueled by the global liquidity spurt. When world starts pulling back the liquidity, the chinese market will implode. BOJ very hesitant to raise rates, and the carry trades continue. And FED is suppose to be cutting rates at the end of this year. The FED will start cutting when evidence surfaces that our economy is slowing. So slowdown in profits would have to occur here first with a impending recession. Then profits overseas should slow too. So a chinese event wouldnt start unless, a tax measure is introduced or profits start slowing.