Tuesday, July 08, 2008

Where is the A share Market Going?

On average chinese companies (A Shares) will be posting +21% earnings growth. This of course falls short of the heady days of 2007 when they were posting multiples growth. However, 21% is nothing to sneeze at.

The average P/E of companies listed on the Shanghai exchange is now down to 21x from over 70x, and the index is down 60.

Time for a rebound.

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