Shanghai bear growls again

Investors in China have had a few difficult years. Indeed, China has been surprisingly disappointing to a point that even bears like ourselves are often becoming too optimistic.

Despite improving economic data, Chinese equities just do not care. the Shanghai Composite closed yesterday below 2000 for the first time since 2009. That is a post-crisis low.

This makes Greek equities look like a star.

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  1. The Chinese economy is currently being shaken by something more fundamental: the lack of rule of law. Property title means little when ownership cannot be assured. What is a stock worth under such circumstances? We are underestimating the coming challenges facing commodities.

  2. I am sure Shane Oliver would be recommending the Index is an excelent buy opportunity through his Company’s managed fund , just as he and other share spruikers have kept saying since 2009.

  3. It’s more than that, factories in China are struggling, and their economy is slowing down. domestic consumption will never take over the role of exports, its impossible and knowing the Chinese when they see a slow down they start saving, which will slow the domestic side of things down.

    What is worse about China is this property bubble they have going on, what happens when NPL’s catch up on everything, including factories that gambled in property but find their orders have dropped and can’t service those loans anymore, and what happens to all that property that is stacked like a deck of cards.

  4. Probably because people realize that all the Chinese business/govt numbers and business practices are all B$%%S%^T. Would you invest any of your money into a Chinese company. I sure as hell wouldnt.