Yeah and people there are expecting the local market to go up further in August.
Chinese link: http://finance.sina.com.cn/stock/marketresearch/20070730/07313831418.shtml
EDIT: Just so everyone knows, in Chinese stock market, Red is up, Green is down.
Most liked posts in thread: China bucking the correction trend?
Shanghai and Shenzen SS is one big casino for the rich and poor. The chinese govt is already implementing policies to slow the economy down, but to no avail atm.
I though it interesting to ponder
Although the Chinese are aware of the history of stock market performances in 'the west'; Until they have been scarred by crashes and depressions such as 1929/1930s, 1987 etc, they will never manage risk effectivley.
Maybe just maybe the Chinese have got it right .......after all they have a far longer history of trading and commerce than OZ, the US and even Europe.
Sure many of you have tried to do a deal with a Chinaman at some time of your life.
Now that capitalism is becoming available to more and more in mainland China it appears that they are embracing it and it is obvious that Greenspans analogy that "when China sneezes the world catches cold" is more applicable than saying that "if US sneezes" etc etc.
The money may not be evenly shared in China but there is a lot of old money and a lot of very canny Chinamen.
Same goes for India.......
Myself being a Chinese with a western education, I wouldn't touch the Chinese market right now - not for short-medium term trading and/or investing anyway. Not unless somebody can point out to me that stocks with p/e of 60+ is sustainable, or unless it can be proven that the economy can continue to grow at such pace even when virtually all of the city workers spend their working hours trading on the market instead of doing productive work.
From what I can see, one day, doubt will set in, and the money will run out. Then, a lot of people will get hurt - very badly hurt.
Can they can continue this for another 3/5years? I am a little sceptical. That said, if someone had told me the ASX200 would be at 6400 a couple of years ago I would have scoffed at them.
One thing I think we have to remember is that this is a new market so therefore this might actually be the benchmark for the future or just the beginning of something spectacular?
Tell me your thoughts!