I hv just heard that the government wants to raise the down-payment from 30% to 40-50% of the total mortgage amt. Shenzhen 2nd-tier housing price has already dropped ~10% in last 2 mths. It may drop further due to this news. But it is unclear how this news will affect the market tomorrow.
BTW, in mainland China, locals seldom buy shares of banks b'coz they know that they are in pretty bad shape. The reason why they got listed was that the government injected a lot of money to lower the bad loan ratio before the IPO. But structurally their issues hv yet to be fixed. Local Chinese are more interested to buy the shares of oil companies, infrastructure companies, etc instead but there is always a strong demand for these due to the strong growth of China.
I believe u should be more careful of what u say here.... What u put out of your mouth tells a lot about what kind of species u really are.
Nobody mentioned the obvious yet: The Chinese are not allowed to invest in foreign stock markets. Foreigners are not allowed to invest in the Chinese stock market. So they are two completely different markets with completely different investor bases. Why should there be any correlation? And that "they are in a bubble" is actually a pretty good explanation. The bubble is still inflating strongly, so news from abroad have very little effect. My guess is that the Shanghai index will climb to at least 8000 in the wildest phase of the mania.
I think in 5 years this will resemble the Chinese A share B share whatever the communist party dream up share markets.