NEW YORK, Aug. 24 -- China's stock market has added nearly a trillion dollars in value over the past month despite mounting economic pressures from US tariffs and a persistent property crisis.

The Shanghai Composite Index has reached a decade-high while the CSI 300 Index has surged more than 20 per cent from its yearly low, creating a stark disconnect with deteriorating economic indicators, Bloomberg reported.

Cash-rich investors seeking alternatives have fuelled the rally, but analysts from Nomura Holdings and TS Lombard warn of potential bubble formation and "irrational exuberance."

Homin Lee of Lombard Odier cautions that the bull market cannot sustain itself if inflation remains near zero and corporate pricing power continues to we...