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  • 11 Reasons Why It's Time to Invest in China and 5 Ways to Play It [View article]
    Most people forget that China lives on exports. When the economy of US and Europe declines China has farther to drop.

    As to the Chinese shares selling at 8x earnings we have to deal with transparency and accuracy. In addition analysts here and in the US are alike - look at how much cheaper US stocks are now - but they have not marked down the more realistic earnings. When one factors in the 'real' earnings stocks in US and China are no longer cheap. I like to see specific examples to show how many company's earnings are increasing and not decreasing.

    Because the Chinese have traditionally saved 40% of their income when the economy contracts the consumers are the first one to defer buying. Just look at their automobile sales in 2008. The sales figure has hit a wall long before the US did.

    Locals so far are somewhat optimistic because they still have jobs. When more jobs are eliminated in Southern China (called Pearl Delta, the Shenzhen-Guangzhou-Zhu... triangle) which is happening now those optimism will fade fast.
    Jan 15 09:01 am |Rating: +2 -1 |Link to Comment
  • China ADRs: Severe Loss in June [View article]
    ...to user 103266: I would just sit on my cash now. You can buy them later at an even cheaper price. The current PE valuation may seems appetizing. However with the ongoing cost increases in most companies their quarterly report will miss estimates as time goes on.
    Jul 03 11:43 am |Rating: 0 0 |Link to Comment
  • It's More than Just Baidu: 51 Other Ways to Invest in China [View article]
    Since the purpose here is to disseminate different investment ideas I must point out that some of the data is incorrect.

    ACH has gone up 3.5 times this year. PE is nowhere around 5-6.
    LFC has almost doubled this year. The correct PE is somewhere north of 65.
    ZNH had been losing money annually until 12/06. Hang Seng Bank, subsidiary of Hong Kong Shanghai Bank listed the PE ratio of 246.

    It seems that data from ACH and LFC came out of Yahoo Finance.
    I do not know why they listed ACH with such a low PE. I know that
    Yahoo did not update the fact that LFC had splitted 2.67:1 last December even though their stock price chart is correct.

    SNP with a PE of 1400+ is a suspect too. It is just an oil company although a small one by China's standard.
    Oct 31 14:42 pm |Rating: 0 0 |Link to Comment
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