I used to enjoy reading Paris-based Michael Sesit when he penned his weekly "Global Player" column at The Wall Street Journal Europe. Then Sesit joined Bloomberg and I've come across this column of his on the emerging markets, including China.
Are there risks? You bet. Strategists at Citigroup Inc., UBS AG and HSBC Holdings Plc are advising clients to be wary of China, whose Shanghai and Shenzhen 300 Index has soared 155 percent in the past 12 months, including 26 percent in 2007. At 38 times projected 12-month earnings, the index's price-earnings ratio is more than double the MSCI Emerging Markets Index's 15.
And, over at Maoxian, The Chairman offers up an illustration of What It Will Look Like When the Chinese Stock Bubble Bursts.