Rising market drives Chinese investors into a frenzy despite many warnings

Shanghai

HUNDREDS of thousands of investors are piling into China's stock market on the back of a spectacular rally, driving up prices in a borrowing-fuelled frenzy despite warnings of heightened risks.

The benchmark Shanghai Composite Index was sent skywards by a surprise interest rate cut on Nov 21 - it has since soared almost 20 per cent - despite also recording its biggest one-day fall in five years.