Chinese Stock Market Pull Back A Great Buying Opportunity?

Chinese Stock Market Pull Back A Great Buying Opportunity?
Mar 24, 2008 03:56
JIMMYB Points: Join Date: Feb 7, 2007 Status: offline	Having witnessed the recent performances of Chinese shares, many investors have lost their confidence in the stock market. Many of them think that the market has entered its bearish period and decide to retreat. However, there are still some people who don't think so. As some foreign medias report, Chinese stock market is still the best in the world to invest. Some even say that it is the best time now to enter Chinese stock market now and the recent slide in the market is just for adjustment. What do you think？Has the stock market become bearish or just entered its adjustment period? Here is an excerpt of a report from the British MarketOracle website: The Pullback in Chinese Shares Is Opening Up a Great Opportunity My Asia Stock Alert subscribers already own a few of the companies I mentioned here. However, I am not suggesting that you rush out and buy all of these stocks today. As always, you should do your own research. And remember that timing is everything! Right now, the weakness in the U.S. markets has been spilling over to the rest of the world. In fact, the Chinese market — as measured by the iShares FTSE/Xinhua China 25 Index — has fallen by more than 30% from its October highs. That may sound awful, and the weakness could continue in the short term. But it is also creating what looks like a great long-term opportunity. Consider that the trailing twelve month P/E of that index is now a mere 17.8 times earnings. As valuations drop, you should consider adding some Chinese spice to your portfolio. After all, the Chinese economy may be the most powerful economic phenomenon in recorded history. And when you throw fuel on the fire by adding in the 2008 Olympic Games in Beijing, the country's stock market explodes with potential.

Mar 24, 2008 03:56

JIMMYB
Points:
Join Date: Feb 7, 2007
Status: offline

Having witnessed the recent performances of Chinese shares, many investors have lost their confidence in the stock market. Many of them think that the market has entered its bearish period and decide to retreat. However, there are still some people who don't think so. As some foreign medias report, Chinese stock market is still the best in the world to invest. Some even say that it is the best time now to enter Chinese stock market now and the recent slide in the market is just for adjustment.

What do you think？Has the stock market become bearish or just entered its adjustment period?

Here is an excerpt of a report from the British MarketOracle website:

The Pullback in Chinese Shares Is Opening Up a Great Opportunity
My Asia Stock Alert subscribers already own a few of the companies I mentioned here. However, I am not suggesting that you rush out and buy all of these stocks today. As always, you should do your own research. And remember that timing is everything!
Right now, the weakness in the U.S. markets has been spilling over to the rest of the world.
In fact, the Chinese market — as measured by the iShares FTSE/Xinhua China 25 Index — has fallen by more than 30% from its October highs.
That may sound awful, and the weakness could continue in the short term. But it is also creating what looks like a great long-term opportunity.
Consider that the trailing twelve month P/E of that index is now a mere 17.8 times earnings. As valuations drop, you should consider adding some Chinese spice to your portfolio.
After all, the Chinese economy may be the most powerful economic phenomenon in recorded history. And when you throw fuel on the fire by adding in the 2008 Olympic Games in Beijing, the country's stock market explodes with potential.

Apr 11, 2008 15:43	#1
APAULT Points: Join Date: Mar 11, 2006 Status: Offline	Has anyone seen any figures on unrealised benefits from the Olympic games? I bet the future benefit is insignificant - it is but a fleabut compared with the size of the nation's economy.

Apr 11, 2008 19:06	#2
MARRIE Points: Join Date: Jan 7, 2008 Status: Offline	Don't expect too much this summer in mainland stock market. I guess the writer is funded by brokers, backoffice and stamps collectors who are losing coz of the mkt illiquidy

Apr 11, 2008 21:35	#3
GARYKINKADE Points: Join Date: Jan 8, 2008 Status: Offline	Don't think there has ever been a large economic gain of any country that has hosted the Olympic games in the past, maybe a short spike in the local economy but overall it's break-even at best (my guess only).

Apr 15, 2008 21:49

JIMMYB
Points:
Join Date: Feb 7, 2007
Status: Offline

"Don't expect too much this summer in mainland stock market. I guess the writer is funded by brokers, backoffice and stamps collectors who are losing coz of the mkt illiquidy."

Perhaps. However, some guys hav been expecting for it for long. They have lost too much in the stock market. Talking about Olympic Games, did you remember Montreal Olympic Games? Montreal lost about 2.4 billion dollars. They had spent about 30 years to pay off their debt. I don't know what will happen to Beijing Olympic Games.

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