Just a few days after we discussed how China's Shanghai Composite had quietly made a fresh 10 year high when it breached the 3,700 level, overnight the SHCOMP made fresher 10 year highs now reclaiming 3800 level just days after breaching 3700. Or, as Goldman trader Fred Yin points out, "it took about 3 weeks from 3500 to 3600, another 3 weeks from 3600 to 3700" and then 3 days to go from 3700 to 3800. Clearly the move in China is accelerating.

China's CSI300 index - the rough onshore Chinese stocks equivalent of the S&P - recorded its biggest weekly rise since November. Gains in local chipmakers provided an added tailwind Friday after a report that US rival Nvidia has instructed component makers to stop production related to its H20 AI chips. 

Most important, however, the chart below shows that the SHCOMP is now on the verge of a historic trendline breakout, one which could result in the next Chinese stock bubble in the coming weeks and months.