Greenspan: China's stock market bubble will burst

Former US Federal Reserve Chairman Alan Greenspan said Tuesday that China's stock market is a speculative bubble that will burst, Bloomberg reported. Asked if the Chinese equities market was in a state of "irrational exuberance," a phrase he coined in 1996, Greenspan said, "I think so." His comments reprise remarks from May, when he was concerned that Chinese equities might undergo a "dramatic contraction." The country's benchmark CSI 300 is up 170% so far this year.