Wade, I don't think you can generalize and say that all Nasdaq/NYSE Chinese stocks carry such low multiples. Check out:
ATAI - PE: 25
BIDU - PE: 53
CAST - PE: 16
CEDU - PE: 33
COGO - PE: 10
CTRP - PE: 39
DL - PE: 72
EDU - PE: 26
NED - PE: 13
SOHU - PE: 18
This is just a quick sampling of some of the more tech-oriented stocks. I used the forward eps estimates for 2009 (or closest full FY) from analyst estimates. Based upon these numbers, it seems clear that if institutions (i.e. mutual funds, pension funds, hedge funds, etc) decide that they like a chinese company and its management, there isn't much to stop it from reaching significantly higher valuations than we are used to seeing from our stable of Chinese stocks.
