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Thread: Why do those investors decrease their holding of Chinese corporations' shares?
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[quote=APAULT,249926]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.[/quote]
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