Excitement over a free trade zone in Shanghai has reached fever pitch in recent weeks but signs of waning enthusiasm have left some investors wondering – is Shanghai's free trade zone really a game changer?
"Successful innovations will ultimately be rolled out nationwide, but probably only after many years. As such, this is an experiment worth watching but not the game-changer some believe," Mark Williams and Qinwei Wang, economists at Capital Economics wrote in a report.
China's benchmark stock index has risen nearly 6 percent since China's Commerce Ministry approved the project on August 22nd, while stocks linked to the project have soared. Termed concept stocks by some analysts, these firms encompass various sectors including construction, logistics transportation, and financial services.
(Read more: Asia stocks go one way, China sure to go the other)
Over the past 30 days, distributor Shanghai Waigaoqiao has sky rocketed 243 percent, Shanghai International Port has surged nearly 150 percent and Shanghai Material Trading has risen 90 percent.