But the rapid run-up in equity prices also carries considerable risks – namely, the possibility that the financial sector will misuse the newfound liquidity to finance more speculative investment in asset bubbles, while supporting old industries with excess capacity. That is what happened in 2008-2009, when a run-up of the Shanghai index (which reached 6,092 in October 2007), together with the government’s CN¥4 trillion stimulus package, sustained overcapacity in traditional industries.