Further to my earlier post here, Li Ka-shing says that Mainland Chinese equities represent a bubble right now. As Asia's richest resident, the 9th richest in the world, and a long history of success in business, his views should carry soem weight.
Equities are up 85% so far this year, and almost 300% over the past 12 months. The average P/E ratio in the CSI 300 is 43- suggesting an expected fundamental return (that is, ignoring capital appreciation) of 2.3% (in contrast, the average P/E in the HSI in Hong Kong is 16, implying fundamental returns of 6.25%). New brokerage accounts are being set up at a rate of 300,000 per day. This market is due for a crash... it's just a matter of time. See this story for more.