big correction is needed. institutional investors are pushing for that otherwise the china market becomes a huge bubble with the inevitable consequences for the world economy when it finally bursts. so the question is no longer whether their stocks are cheap or not, but rather, how to take out some of the hot hair from the balloon to avoid major bumps in the road. the fact that many (millions!) of china investors/gamblers throw their money in the stock market because they perceive it is a quick and riskless way of winning jackpot is the most alarming signal that something is wrong.
how would you capitalize on an expected decline, short an ETF or a futures contract? which ones? if not, then what?