China’s world-beating rally might be a “bubble” ready to burst, said Alan Greenspan, the former U.S. Federal Reserve chairman, and he is supported in this view by Li Ka-shing, Asia’s richest man. The billionaire investor Warren Buffett, chairman of Berkshire Hathaway, last month urged investors to be ‘cautious.’

Tim Leung, a fund manager at IG Investment in Hong Kong, said, ‘If there is a slump in China, the risk of investing in some companies whose earnings are closely linked to the market will increase. When there is a slump in the market, retail investors do much less trading.’ Tim Leung said he did not own China Finance shares.’

All this because China Finance Online may lose its rank as the best-performing foreign company listed in the United States.
American depositary receipts for the company, China’s biggest provider of online financial data, have dropped more than 30 percent this month, as the nation’s benchmark CSI 300 index fell 12%.

Li Ka-shing, chairman of Hutchison Whampoa, said in May that the Chinese stock market ‘must be a bubble.’

Asked if China was in a state of ‘irrational exuberance,’ Greenspan told a conference of insurance executives in Boston on Oct. 30: ‘I think so.’

China’s benchmark stock index, the CSI 300 has risen this year by 85%. The CSI has a valuation of 43 times estimated earnings. By comparison, the Hang Seng index in Hong Kong is at 16 times.

Source: International Herald Tribune

Li Ka-shing(李嘉诚) ：作为中国人，我很为内地股市担心，现在内地市盈率竟达50至60倍，绝对是泡沫。内地经济发展无疑较香港 更快速，但这样的市盈率仍过于惊人。香港股市的市盈率尚不算高，还在合理水平，QDII的投资额只占港股总 市值1%，影响不会太大。如果内地经济有什么波动，香港也会受到影响，希望大家可以量力而为。