Policy ease isn't yet taking in Shanghai, where Monday's 1.6% slide brought Composite Index to a...

|By:, SA News Editor

Policy ease isn't yet taking in Shanghai, where Monday's 1.6% slide brought Composite Index to a 5-month low. Kudos to those who sold the rally following the June 7 cut in rates - the market is off about 6% since. At a PE of 9.7X vs. a 5-year average of 17.7, the Shanghai Composite seems cheap, but how trustworthy are the profits? A look at FXI vs. SPY YTD.