Over the longer term horizon, foreign institutional funds are flowing into Chinese economy, the volume could push assets class into the highs especially into assets class of equities, properties, bonds, commodities and currency (yuan/renminbi).
Amidst over the longer term outlook of appreciating assets value of various assets class, there would be boom and bust, therefore we must understand how to determine overbought/oversold range by applying Asian investment guru master Hu Liyang's half theory which I had been applying his theory and it had shown amazing results.
In one of his books, he wrote on a particular topic of how foreign institutional hot money inflows is determine by 4 highs and 1 low with a global investment framework theme like equating to "BRICs", "VISTA" and "Frontier" markets. example of "BRICs" stands for Brazil, Russia, India, China and South Africa.
Shanghai Stock Exchange Index rallied from 2361 points in Oct 2014 to June 2015 high of 5178 points in a short span of 8 months, on expectations of Chinese markets MSCI inclusion