Investor smiles at a securities brokerage in Fuyang city, East China's Anhui province, May 11, 2015. [Photo/IC]

The saying that "bravery never goes out of fashion" sounds familiar in ChiNext, a Nasdaq-style index tracking growth enterprises listed on the Shenzhen Stock Exchange, as rallies have pushed its average market price-earnings ratio to more than 100 times.

The measure soared 110 percent since beginning of the year as of Monday, beating the 34 percent increase of the benchmark Shanghai Composite Index by afar. The latter has an average market multiples of no more than 22 times.

"It's OK to be expensive as long as your call is right", said Xun Yugen, chief strategist of Haitong Securities, the country's second-largest brokerage, in a note on Tuesday, adding that ChiNext stocks will play a leading role in the market bull.

Bull or bubble?

The ChiNext rallied 5.8 percent on Monday, with only two stocks edging down and more than 90 jumping by the daily limit of 10 percent. The transaction value surged to a record high of 170 billion yuan ($27.4 billion).

"The ChiNext is like real estate stocks between 2005 and 2007," said Xun, adding that first-quarter report reveals funds significantly overweighted telecommunication, media and technology (TMT), as well as healthcare, compared to the weightings in the CSI 300 index, a gauge of Shanghai- and Shenzhen-listed shares.

Banking information system provider Amarsoft became the first stock in China that edged over 400 yuan. Its share closed at 427 yuan on Monday, up 6.6 percent.

Another ChiNext stock Guangdong QTone Education, an application and information service provider for fundamental education, surged 7.7 percent to 408.8 yuan.

However, as gains are surging, so is fear. China Business News cited a manager of a Shenzhen-based hedge fund, saying it's time to downweight the ChiNext, for he fears a bubble burst like what Nasdaq experienced in 2000. "The measure has surged to above 3,000, and it's too crazy."