rlirph

When and Where to Go in China

Price is determined by demand and supply.

For 2008 and 2009 the government has allowed the restricted shares to be released into the public. Depends upon when and where you read the figures quoted are like 30% of all shares outstanding are freely tradeable in the market which means 70% are still restricted. Or you figure there will be about two more times supply of stocks coming onto the market this year and next year.
Granted a substantial portion is held by government agencies and will probably not be sold.

Until the market has absorb this supply it will be difficult for the market to get any traction. I am looking at 1800 as a good entry point. Instead of getting into ETF I will stay with the major names such as China Mobile, China Life, Guangshen Railway, Huaneng Power, PetroChina, and Yangzhou Coal.