From RBS via FTAlphaville comes a lovely illustration of the fundamentals of the Chinese stock market:
It’s almost as bad as the Australian housing “market”. Good luck finding price discovery in there. And without any credible benchmarks for value, what you get is this, from Mac Bank:
The A-share markets are extremely volatile and the violent flow of liquidity distorted the situation further over the last 9 months. This does not only apply to small- to mid-cap stocks.The swings in big-cap names can make jaws drop, literally.
