China now ranks as the third-biggest stock market in Asia by value, after Japan's $4.8 trillion and Hong Kong's $2.1 trillion. The U.S. market, valued at $17.4 trillion, is the world's biggest.

Economic growth in China has averaged 9.6% in the past five years. China's economy grew 10.7% in the first nine months of last year after overtaking the U.K. and France in 2005 to become the world's fourth largest economy behind US, Japan, and Germany. 

The Shanghai and Shenzhen 300 Index is trading at 34 times earnings and enjoyed a 129% growth during the last 12 months.  

China's trade surplus swelled 74 percent to a record $177.5 billion last year, pushing China's foreign-exchange reserves to $1 trillion.