Is China cheap or expensive?

Discussion in 'Trading' started by george_s, Aug 19, 2009.

  1. The China indexes are up considerably year to date.

    But they are down 54% from October 2007, and earnings/revenues have grown since then and continue
    to grow at 8 to 10 percent a year going forward.

    Depends on your time horizon.

    Compared to US and Europe, China seems a good long term bet.
  2. valuation wise china is much lower than at height of the last bubble.
  3. Topper


    My opinion is that China related corporations are growing like bull mastiff pups. As long as I keep finding companies with 50-100%+ annual revenue growth, year over year, I'm a buyer until the plateaus begin.
    What's funny is how CNBC seems to be trying to knock em down a bit... maybe because some big buyers want in a bit lower? The rumor they've been pushing for the past couple days is that the accounting standards may be controlled and slippery. But then I think about investors like Jim Rogers who has been pushing China for well over a decade now.

    ...basically, the heck with cnbc politics
  4. pretty much every chinese company has two sets of books, that is a known fact. like you mentioned you are buying growth not their books
  5. 1) Beef with Broccoli?
    2) What about submerging fund managers? :cool:
  6. this is what i see:

    Moore Capital pours into Equities: China, Financials & Consumer Staples
    August 19th, 2009 | More
    Louis Bacon’s Moore Capital Management bought up equities over the 2nd Quarter of 2009 according to the most recent portfolio holdings of the Global Macro orientated growth investor. Overall, the hedge fund manager’s exposure to US traded equities rose to $1,158 million as of 6/30/2009 from just $510 million as of 3/31/2009.

    Moore Capital’s largest purchase was a new $274.3mm / 7,150,000 share position in the iShares FTSE/Xinhua China 25 (FXI) ETF, which invests in the top 25 largest companies in the China equity market that are available to international investors. The other Chinese equity position in the firm’s portfolio was energy giant China Petroleum & Chemical Corp “Sinopec” (SNP). In Sinopec, the firm trimmed its position by 40,000 shares over the 2nd Quarter, resulting in an quarter end position of $9.9mm / 130,000 shares.