What a day! yesterday we were down >300 on the HSI. Looked to have been brought on by the hardline comments by Beijing on Taiwan over the weekend. Nerves are frayed.

There has been an outflow of hot money over the past 2 weeks, more as a result of USD strengthening on expetced higher rates than anything else.

Call me a conspiracy theorist but you won't see the big firms touting this market until the big china IPO's are ready in the 3rd quarter. How else are they going to sell the IPO's otherwise. The current low valuations are great for negotiating lower pe's for the IPO's.

You can buy China Telecom (#728) for 7x pe, and Sinopec (#386) for 10x pe. By the way, I hold these in my personal portfolio.