With China's stocks trading at near their most expensive forward valuation since 2015, investors have pushed the value of Chinese stocks being shorted to a fresh record. The balance of securities lending in domestic exchanges reached 97.4 billion yuan ($14.5 billion) as of Oct. 16. While corporate earnings should continue rising as the economy recovers further, some firms from the technology, health care and consumer products sectors may face downside risk as valuations become stretched compared to their peers, said CCB International's Wenli Zhao.