Bull charge sees Shanghai index reach 7-year high

China's benchmark stock index reached its highest level in seven years on Tuesday, with the market frenzy showing no signs of cooling.

But some observers are wondering how long the liquidity-driven bull run can last, as economic data for the first quarter that is due to be released soon could paint a darker-than-anticipated prospect for the economy.

The Shanghai Composite Index rose by 2.52 percent on Tuesday to close at 3,961.38 points, just below the 4,000-point barrier, where many analysts feel the market will face strong resistance.