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IMVHO the Shanghai market, having gone up 400% in just over a year, and at P/E of 50+, is a bubble. HK is being sucked into a similar state. It could keep going up for a while, but not at this rate right up to the olympics or it will pop too early.

I would think it will implode severely after the olympics if not before ... these things do ... for example the HK residential housing market dropped 70%(!) in the 5 years after the UK-China handover ... mainly because it was in a supply-constraint led and excitement driven bubble ... just like Chinese stocks are now.

Korea is also very frothy, and india too IMHO ... emerging markets are in for a smack if U.S. housing causes a U.S. import demand slump. There's been a lot of investment in China and elsewhere into production facilities for goods for export ... if demand slumps and that investment falling off sharply ... 40% of Chinese GDP ... will cause absolute chaos economically and so socially ...
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