Printer Friendly

On China's stock market.

"According to The Economist's 'Bubble guide,' China's recent share-price boom is still relatively modest compared with the giants of history. The chart plots the performance of Chinese share prices over the past five years against the three great bubbles of the 20th century: Wall Street in the 1920s, Japan in the 1980s and America's NASDAQ in the 1990s. The NASDAQ composite index saw a gain of more than 500 percent from 1995 to early 2000. Japan's Nikkei 225 jumped by 300 percent from 1984 to 1989. The Shanghai A-share index, having recovered most of its plunge in late May, shows a gain of about only 160 percent over the past five years."

"Moreover, Chinese A-shares now have an average price-earnings (p/e) ratio of around 45. At their peaks, the average p/e ratio of the Nikkei 225 in 1989 and the NASDAQ at the start of 2000 were both well over 100. This suggests that Chinese share prices could have much further to climb before the bubble bursts."

--The Economist, June 23
COPYRIGHT 2007 International Economy Publications, Inc.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2007, Gale Group. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:China
Author:Rees, Matthew
Publication:The International Economy
Date:Jun 22, 2007
Words:173
Previous Article:Will environmentalism become the new protectionism? Twenty-three experts weigh in.
Next Article:On valuations of the yuan.
Topics:


Related Articles
Market flatness remains.
Export uncertainty.
Remembering the crash.
Syrian Opportunity? Syria's only hope long-term in avoiding economic crisis is to improve its bilateral relationship with the United States.
Will environmentalism become the new protectionism? Twenty-three experts weigh in.
On bank withdrawals by Chinese consumers.
On U.S.-China relations.
On Chinese stock market performance.
QATAR - The Global Oil Perspective.

Terms of use | Privacy policy | Copyright © 2019 Farlex, Inc. | Feedback | For webmasters