Gaining on them is economic reality that has many wondering if the more than 30% surge in equities from a September low is overdone. The problem is an underlying economy facing intensifying headwinds. And one failing to keep pace with the sudden surge in investor optimism toward China.

The scorching rally in Chinese stocks over the past week or so underlines one of the key rules of markets: always keep an eye on the crowd. Shortly before an extended market holiday, authorities in Beijing sent a forceful message that enough was enough.

Analysts say the difficulty for Chinese policymakers will be turning the opportunism-fueled rally into a broader recovery when markets reopen after the Golden Week holiday.

The euphoria was thanks to Beijing's big-bang stimulus announcement, that showed urgency and concerted commitment to boost China's ailing economy.