Li: It is 50 to 60 times the earnings
May 23rd 2007 08:02
That is the state of the Chinese stock market at the moment with too much funds chasing too few stocks that are lacking the fundamentals in the first place.
On Friday the Chinese government decision to raise the interest rate and also announced that Qualified Foreign Institutional Investors (QFII) are shunning local stocks, are likely to affect the retail investors/speculators movement as the market cooled on the last trading day of the week.
However it did not prevent Hong Kong Tycoon, Li Ka-shing, from voicing out his concern of the bubble phenomenon on the mainland market as any major reversals are likely to affect Hong Kong stock market as the territory's retail investors already got the bug from their compatriots from north.
If Li Ka-shing came out to say about the Chinese market then this is something serious.
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Related Post: The China Series
On Friday the Chinese government decision to raise the interest rate and also announced that Qualified Foreign Institutional Investors (QFII) are shunning local stocks, are likely to affect the retail investors/speculators movement as the market cooled on the last trading day of the week.
However it did not prevent Hong Kong Tycoon, Li Ka-shing, from voicing out his concern of the bubble phenomenon on the mainland market as any major reversals are likely to affect Hong Kong stock market as the territory's retail investors already got the bug from their compatriots from north.
If Li Ka-shing came out to say about the Chinese market then this is something serious.
---
Related Post: The China Series
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