Replies to post #566136 on $Stock*Shop*Charts*News*Option$

[Tuff-Stuff]

"Go East, Young Firm": Chinese Companies Drop New York Listings, Return Home

by Tyler Durden on 06/07/2015 20:00 -0400

China’s equity market bubble has become the stuff of legend recently, as millions of newly-minted day traders, record margin debt, liberalized cross-border flows, and the inclusion of China A shares in two transitional EM FTSE Russell benchmark indices have created a veritable frenzy on the SHCOMP and, more spectacularly, on the Shenzhen exchange.

Valuations have soared, as has turnover and the bubble chorus is growing appreciably louder by the day. The following excerpt from a recent BNP note captures the situation nicely.

Momentum buying reinforced by market-capitalisation benchmark weightings could further inflate the bubble. In particular, imminent decisions on the inclusion of A-shares in global equity indices might see strong institutional buying buttress the retail mania for a time. Still, the exponential trends in turnover, margin debt and increasingly valuations imply that a climax is now unlikely to be too far away. The Shenzhen Composite’s P/E ratio is now over 66x (with a median P/E of 108x), compared with the 75.8x P/E at the 2008 bubble peak.

Of course not everyone thinks the historic run is likely to end anytime soon and indeed, the momentum serves as a siren song to many Chinese companies which have listed on the NYSE. Reuters has more:

Read more http://www.zerohedge.com/news/2015-06-07/go-east-young-firm-chinese-companies-drop-new-york-listings-return-home

[sludgehound]

China Exports, Imports Down in May

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MW Hong Kong stocks slim loss after trade data
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22:43 ET
BEIJING -- China's exports fell 2.5% in May from a year earlier in dollar terms, after a drop of 6.4% in April, data from the General Administration of Customs showed Monday.
The May figure was better than the median forecast of a 5.0% decrease by 13 economists surveyed by The Wall Street Journal .
Imports in May fell 17.6% from a year earlier, compared with a 16.2% drop in April, and was also worse than the poll's median forecast of an 11.0% decrease.
China's trade surplus widened in May to $59.49 billion from $34.1 billion in April, exceeding the median forecast of a $45.1 billion surplus.
In yuan terms, China's exports fell 2.8% in May from a year earlier, after a drop of 6.2% in April. Imports in May were down 18.1% from a year earlier, compared with a 16.1% decrease in April.
--Write to Grace Zhu at [e-mail]

(END) Dow Jones Newswires
06-07-15 2243ET
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