Chinese stocks continue to climb as 2006 has been a rewarding year for investors after years of frustration. Both the Shanghai and Shenzhen Composite Indices reach all-time new highs today. In AP's coverage, a Chinese securities analyst was quoted saying, "Investors keep putting money into the market and most of them believe that the long-term prospects of market are positive given the hopes for yuan gains and better corporate earnings." In fact, the market cap of both indices has surged by 130% this year to $945 billion. Earlier this week, Bloomberg quoted a Hong-Kong based UBS analyst who said, "A lot of investors are buying but at the same time, they're pretty cautious. Stock valuations are high and there is a problem finding value stocks." The yuan meanwhile, reached its highest level against the U.S. dollar today since its pegged ended in July '05.
• Sources: Newsday-AP, Bloomberg
• Related commentary: Chinese Stocks Outperform -- Watch The9 Ltd, Goldman Sachs Discusses China Opportunity, Capture China's Baby Boom With These Stock Ideas
• Potentially impacted stocks and ETFs: China Fund (CHN), Greater China Fund (GCH), iShares FTSE/Xinhua China 25 Index Fund (FXI), JF China Region Fund (JFC), PowerShares Golden Dragon Halter USX China (PGJ)
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