Too expensive at half the price.... Mainland equities.

I've talked repeatedly here about China's equities bubble (for my last installment, see here). But here's another piece of the puzzle. Bloomberg reported on November 5 that on its first day of trading in Shanghai, Petro China tripled in value, and became the most valuable company in the world by market cap- much larger than any other oil company, even though several of these have significantly higher revenues, oil reserves, and other assets.

Or consider this table published in mid-October. Of the 25 most valuable companies in the world by market cap, 8 were Chinese, while only one Japanese company, Toyota, makes the list- even though Japan is the world's second largest national economy, and many Japanese companies are global brands, with a strong global presence.

Focusing on financial institutions on the same list, there are 4 Chinese companies on the list, and only three from the rest of the world.

Yes, China represents a great opportunity for future growth and therefore future profits. But this great?