Which one? I only found statement like "illegal brokerage firms sell and trade shares of unlisted companies".
the reporter on cnbc was talking about (chinease citizens, chinease banks, and chinease markets implicitly) and she said it was illegal, but that the govt. doesn`t enforce it. who knows how changing any of those three implicit assumptions changes the legality and enforcement of this practice, which essentially, is an internal carry trade for chinease citizens right now.
so what's the play here?? long the exchanges and be ready to short the big lending banks?? if you're in the U.S. how do you access these foreign markets?? ADRs??
chinease banks have a history of poor lending practices, that`s why those banks are still relatively cheap as compared to american banking stocks, their regional banks make loans that would never pass the standards of a capitalistic country, they took a hit today, along with the insurance companies.
ahahah. the only thing these guys have in sync with communism is their red flag. they're running a laissez-faire economy where there is no safety net for those left behind. their stock market ressemble the wall street situation on late 20's.
i dont know where you get that info but it is wrong. China PE is close to 40 with current valautions. even the S&P 500 is trading above 18 right now.
http://stocks.us.reuters.com/stocks/overview.asp?symbol=.HSI interesting hsi almost hit 21,000 and then what a fade, it has done this twice this year, once it dropped nearly 1000 in a week at the beginning of the year, this market is all over the place with volitility of swing moves of 2% each day.