"With such excessive liquidity, the index is likely to continue to climb, and there is no clear sign it will end in the short term," said Zhang Qi, an analyst with Haitong Securities.

The rise of A shares yuan-denominated mainland stocks has tempted many blue chips originally listed overseas to come back to the home market.

China Life Insurance, the nation's biggest life insurer, has applied to issue A shares worth as much as 25.5 billion yuan (US$3.23 billion) in Shanghai. The offer will likely make the company the second largest public offering in the A-share market after Industrial and Commercial Bank of China , the country's biggest lender.

The bullish market has allowed many ordinary Chinese to share the profits from the economic boom for the first time.

"The rise is just crazy. Many of my friends have doubled their money by investing in stocks or mutual funds this year. I also want to put some money in the market," said Li Yan who works for a law firm.

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