CHART: Hong Kong/China mega-bear market update2 June, 2012, 19:29. Posted by Zarathustra
We have been saying for quite a while that the burst of a stock market bubble often lead to a prolonged period with stock doing virtually nothing or down even though earnings could have been going up. Not to mention that they are not even going up anymore for Chinese companies, and with multiple compression, the results for the past one and a half year not only confirms our bearish macro views on China, but also the bearish views on Hong Kong/China equities in general.
Below is yet another update for the chart of Hang Seng China Enterprise Index (HSCEI) and Shanghai Composite with the peak on 2007, compared with other epic stock market bubbles: the Dow Jones Industrial Average with the peak on 1929, Nasdaq for the IT bubble peak, and Japan Nikkei 225′s 1989 peak. The peak is aligned and rebased to 100.