Deutsche Bank, quoted in FT Alphaville:
Bubble watchers point out median earnings multiples for Chinese technology stocks are twice US peer valuations at their dot.com peak. More worrying perhaps is a health-goods-from-deer-antlers producer on 70 times, the seamless underwear manufacturer on 90 times or those school uniform and ketchup makers on 330 times!From the same article in Alphaville:
It seems everyone in the country is racing to open a brokerage account – 1.67m new accounts in the latest week, according to the China Securities Depository and Clearing Co. That sounds a lot, although it is growth of only about 1 per cent a week in the total of new accounts: China, remember is big.They go on to make some comparisons between the current state of the Shenzhen and Shanghai markets and that of the Russell 2000.
"Past performance is no guarantee", etc. I wonder when the music's going to stop?