Chinese Equity Markets: Bubble Or Beast?

PopTart

If you’re not already paying attention to China, you should start now.

So far this year, Dow Jones and S&P 500 have continued their run, and kept US investors comfortable with domestic equity markets. In sticking with what they know, investors have overlooked many of the biggest storylines from the past 12 months. China is one of those stories.

Once considered a highly volatile and generally undesirable emerging market due to excessive government intervention and lack of transparency, Chinese equities have recently gone on a tear. Given the country’s consistent growth rate, emerging middle class, and aggressive global expansion, it has become clear that China is a real investment opportunity that might have finally graduated into a “must own” for many diversified investors.

http://www.forbes.com/sites/duncanrolph/2015/04/27/chinese-equity-markets-bubble-or-beast/print/

scott

I continue to have a positive long-term view on China, but the move is more than a little concerning, as well as how retail-driven it appears to be.

http://www.zerohedge.com/news/2015-04-28/wtf-chart-day-over-4-million-new-chinese-trading-accounts-opened-last-week

JohnChisum

I watched a show on a Singapore financial channel here that went into detail on the investing frenzy in China. They showed large rooms packed with people wanting to sign up. Young and old alike. The Chinese are eager to put their money out there, especially in Hong Kong stocks now that they can via Shanghai.