Over here in China the weather seems to be improving but the mood of the local stock markets has suddenly turned distinctly gloomy.
Local investors are obviously spooked by the Government’s decision to throw the local property market into the deep freeze and the words “China” and “bear market” are being uttered with greater regularity. Share prices have fallen between 15% and 20% over the last month in local terms and, on paper, China does not seem extravagantly expensive anymore. According to SG analysis, the 2010 P/E for China has dropped to just over 14 times earnings (compared to 10 for the UK) and 12 x 2011 estimates (8.5 for the UK). Be careful about reading too much into these stats though – in reality inv...
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