Where China shares are going ? #2--A shares bubble
this stage, we believe the self-correcting mechanism of stock market is also not
able to reverse the overpricing.
are all the right cures. However, they may lag behind the fast-moving liquidity
flow into the market.
Using past peak valuation as a guide, the Shanghai A-Share Composite Index
could go higher before it reverts back to fundamental value.
index could still go higher, the eventual downturn could be damaging to
investment performance. We re-iterate our A-share strategist's long-term valuation
range of 2,200-2,900 on the Shanghai A-Share Composite index.
Suite dans le document PDF ci-dessous
- Danger of going into a bubble is high
this stage, we believe the self-correcting mechanism of stock market is also not
able to reverse the overpricing.
- Government action to broaden the market
are all the right cures. However, they may lag behind the fast-moving liquidity
flow into the market.
- What if the bubble continues ?
Using past peak valuation as a guide, the Shanghai A-Share Composite Index
could go higher before it reverts back to fundamental value.
- Caution to investors
index could still go higher, the eventual downturn could be damaging to
investment performance. We re-iterate our A-share strategist's long-term valuation
range of 2,200-2,900 on the Shanghai A-Share Composite index.
Suite dans le document PDF ci-dessous