Mobin Tahir (Wisdom Tree) | The S&P China 500 Index is up 17.7% and the CSI 300 Index is up 16.8% year-to-date.Breakneck gains in stock markets create excitement, but also raise fears of bubbles. There are good reasons for the strong ongoing rally in Chinese equities, and – although risks lurk on the horizon – we aren’t in bubble territory.
MADRID | They’ve been scaring us with an eventual China crash which would drag the world’s economy. And yet Daily Telegraph’s Roger Bootle insists there is no reason to panic here. The ratio of tradeable equities to GDP is running at just under 30%, while in most countries it exceeds 100%. See the New York Stock Exchange on the graph.
LONDON | July 14, 2015 | UBS | The “Wall of Worry” for the European Equity Bull market has shifted somewhat from Greece to China.
LONDON | July 8, 2015 | Barclays | Shanghai, Shenzhen, and Hong Kong-listed H-Share indices all fell 3-4%, although the declines likely understate the weakness in sentiment given that trading has been halted in shares comprising c.40% of market capitalisation.