A lot of people complain that the equity and property markets in China have become a gigantic casino , such a casino that only the bold, the lucky or the insider gets an upper hand. Today I am not here to judge the nature of such speculative market. However, what I would like to show here, is that there is a good reason for such a speculative mania - if there is one in China for the moment. According to the latest statistics released by National Bureau of Statistics, China’s CPI in Oct increased 4.4% y-o-y. Anecdotely, people start to feel that the price of everything seems going up, except salary. In fact, we are talking about an economy with a 10% real GDP growth and 4.4% inflationary growth, with a bank deposit rate for about 2.5% for 1-year fixed deposit. No wonder people don’t want to leave their saving in the bank any more. According to the above graph, we can see a clear trend that people are starting to draw their deposit out of the banks – in the hope that they can get a slightly better return for the idle cash. How this saga ends remains to be seen – however, from a variety of perspectives it seems that the speculative mania is growing in China which has a large chance to result in some big bubbles in a few sectors.