Why do those investors decrease their holding of Chinese corporations' shares?

Why do those investors decrease their holding of Chinese corporations' shares?
Oct 10, 2007 03:20
DREAMLIFE Points: Join Date: Sep 5, 2007 Status: offline	Recently, many investors have decreasced their holdings of Chinese corporations. In recent two months, Buffett has decreased his holding of PetroChina to 6.97%. Temasek, a Singapore investment instituation has decreased its holdings of China COSCO Group from 6.11% to 5.72%. Alcoa International also anounces to decrease its holdings of Chinalco about 15.3 billion HK dolars. What happened? Are they pessimistic about the Hong Kong stock market or just for getting their profits? What do you think?

Oct 10, 2007 03:20

DREAMLIFE
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Join Date: Sep 5, 2007
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Recently, many investors have decreasced their holdings of Chinese corporations. In recent two months, Buffett has decreased his holding of PetroChina to 6.97%. Temasek, a Singapore investment instituation has decreased its holdings of China COSCO Group from 6.11% to 5.72%. Alcoa International also anounces to decrease its holdings of Chinalco about 15.3 billion HK dolars.

What happened? Are they pessimistic about the Hong Kong stock market or just for getting their profits? What do you think?

Oct 11, 2007 03:59	#1
ICEBERG Points: Join Date: Sep 10, 2007 Status: Offline	I guess that they are worried about the present stock market. Though it is flourishing now, the bubble has appeared.

Oct 12, 2007 09:55

APAULT
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This question was recently asked in another thread. If Buffet was really scared he would have sold out completely. There is no longer term investor than Buffet, but even long term investors need to rebalance their portfolios. If the price of the Chinese shares he holds have risen faster than the rest he may sell some because he now has too higher percentage in China and his risk is skewed. Looking at this from another perspective, there are new opportuities arising in the market so to fund this he may sell off some of his existing portfolio.

Based on the past we might believe the Chinese stock market, which has risen so fast, is in a bubble situation. But if we look at the real economic growth and the growth in profits Chinese businesses are experiencing, there is some basis for the rise in prices.

Oct 15, 2007 05:01	#3
JIMMYB Points: Join Date: Feb 7, 2007 Status: Offline	Quote: If the price of the Chinese shares he holds have risen faster than the rest he may sell some because he now has too higher percentage in China and his risk is skewed. Paul, I agree with you on this point. Usually, those smart investors do not follow others' steps. Encouraged by the present share prices, I guess that more investors will choose shares of PetrolChina. This is not good.

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