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Cheap valuations make China stocks a great takeaway
29 Jul 2010, 1511 hrs,REUTERS
SHANGHAI: Shanghai's stock market, the world's worst performer this year after Greece, has started to rebound after plunging as much as 30 percent this year.
With valuations at their lowest in 19 months and as confidence mounts that China can orchestrate a controlled slowdown, analysts say the benchmark index could gain another 13 percent by the year end.
Despite recording the strongest growth amongst the major economies, China's domestic share market tumbled in the first half as Beijing took a slew of steps to cool the red-hot property sector and liquidity tightened due to large initial public offerings.
The sharp slide has also pushed Shanghai's A shares into a discount versus mainland stocks listed in Hong Kong, for the first time in four years in June, and combined with technical indicators, point to a reversal in the trend.
.
29 Jul 2010, 1511 hrs,REUTERS
SHANGHAI: Shanghai's stock market, the world's worst performer this year after Greece, has started to rebound after plunging as much as 30 percent this year.
With valuations at their lowest in 19 months and as confidence mounts that China can orchestrate a controlled slowdown, analysts say the benchmark index could gain another 13 percent by the year end.
Despite recording the strongest growth amongst the major economies, China's domestic share market tumbled in the first half as Beijing took a slew of steps to cool the red-hot property sector and liquidity tightened due to large initial public offerings.
The sharp slide has also pushed Shanghai's A shares into a discount versus mainland stocks listed in Hong Kong, for the first time in four years in June, and combined with technical indicators, point to a reversal in the trend.
.
