From Underdogs to Overheated: Chinese Banking Stocks Are Surging

A pedestrian (L) looks at an electronics stock indicator displaying the morning session of the Tokyo Stock Exchange in Tokyo on December 14, 2016. Tokyo stocks opened slightly higher on December 14 after the Bank of Japan said business confidence picked up in the last quarter, while investors were awaiting results from a key US central bank meeting.- AFP

Chinese bank stocks have gone from cold to hot in a matter of days.

Take Agricultural Bank of China Ltd. After falling by an annual average of 2.7% since its Hong Kong listing in 2010, the cooperative lender has climbed 14% in a blistering eight-day rally.