The Chinese government's "blow up the stock market" strategy is working, with double-digit growth in Alibaba (BABA) and other Chinese stocks. Dan Wang discusses China's economic dichotomy, noting that while the country boasts a $1 trillion trade surplus, consumer confidence is low. China is doubling down on high-tech investments, creating a scenario where capacity buildup and deflation continue. She also explains why Chinese companies are listing in Hong Kong rather than the mainland and why the housing sector slump will last longer.