Mr. Zhao

China Stocks: Risks Ahead

Non-food inflation is still mild. Chinese gov't should do more to promote food imports instead of hiking interest rates and reserve ratios. You are actually shorting Hong Kong H shares with FXP. IMO H shares are in the process of bottoming and shorting them at this valuation not rational. Even A share will not collapse but rather may go down to around 3000 and reach parity valuation with H shares. China's fundamentals are still bright.