China's stock market is experiencing a $1 trillion rally, reaching decade highs and drawing increased participation from wealthy individuals, institutional investors, and hesitant retail investors. This surge is occurring despite a slowing economy and has prompted concerns among brokers and policy makers about potential risks and "irrational exuberance." State-backed institutions and larger investors have been key drivers of the rally, with retail money gradually returning to the market. Commercial banks, including China Minsheng Banking and Huaxia Bank, have tightened oversight of clients using credit cards to finance stock investments amid growing retail activity. The market is on track for a record monthly turnover, with average daily volumes reaching approximately 2.2 trillion yuan ($309 billion), surpassing previous highs. Hedge funds are also poised for their largest inflows in six months, driven by strong August performance and increased A-share buying. While some Wall Street analysts debate the sustainability of the liquidity-fueled rally, major financial institutions like Goldman Sachs have raised their China stock targets, contrasting with Morgan Stanley's more cautious stance.