China Growth Stocks

[wadegarret]

China stocks

I understand why the China stocks are rallying- I mean the shorts are out for now. However hard to to understand how these stocks would get to PEs anywhere near where they once were. I used to give a China stock a max of a 5-6 PE fully taxed going forward regardless of the growth. However now after the 2011 horror, even if a company appears legit, I wouldn't give more than a 3-4 PE going forward.

I mean here in the US right now, we can find stocks that have around 5 PEs going forward with nice growth. AGM(4.5 PE going forward& pays 2% dividend), CMT(5 PE going forward), CYH(5.5 PE going forward), AXL(5 PE going forward), & UVE(3.5 PE going forward & pays 7.7% dividend) to name a few. Why would savvy investors risk a China stock after it gets to a 3-4 PE going forward when there are US stocks with 5 PEs or less going forward that are infinitely safer ?