Chinese retail investors are opening new share trading accounts at a faster rate than ever before, in spite of increasing signs of a bubble in the mainland market.

In the last week alone, more than 1m new accounts have been opened, taking the total for the last four months to more than 10m – greater than the previous four years combined.

The wave of new money has led the Shanghai and Shenzhen markets consistently to hit record highs, having bounced back from an 8.8 per cent correction on February 27, which many blamed for a global sell-off.

However, analysts warned that the price levels were unsustainable and the market could be approaching another correction.

I don’t like the sound of all this. Everyone knew that after a protracted dormancy period, the domestic stock market was due for a short-term bump when the government finally allowed new listings again, but this represents much more speculation than that. When we get another correction, which will be entirely proper, everyone will freak out again and overreact. Something to which we can all look forward.

These days, whenever I get into a lengthy conversation with one of my colleagues, it always turns out that someone in their family is trading stocks. Also, remember that I am in Beijing - our people in Shenzhen and Shanghai are reportedly up to their eyeballs in this stuff.

More from the Financial Times.

Update: Well, this is positive at least. From Shanghai Daily: “Fund Agencies Cautious with Stock Positions“

Update II: comments from China Redux