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Channel Information
Title: Chinese Bubble
Description: Channel created on May 14, 2007 at the peak of the Bubble to warn of its collapse. May 2007: "The Shanghai composite index's sharp rise in the past 18 months makes the Nasdaq's glory days in the late 1990s look quaint by comparison. Last year, the Chinese index soared 130%. This year it is up another 50%, bringing its market capitalization nearly even with the US$13.5-trillion market cap of the mighty S&P 500. On the valuation side, stocks are trading at an average of 42- times earnings, making the Chinese market the most expensive of the world's major markets. And in terms of behaviour, Chinese retail investors are showing some of the classic signs of euphoria. Faced with low-yielding bank accounts that do not keep up with inflation, they are pouring into domestic equities. ...
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