The glaring divergence between US and Chinese equities revisited5 November, 2012, 23:38. Posted by Zarathustra
After years of very good performance on the S&P 500 and very poor performance of Shanghai Composite, the two indices opened a very glaring gap, as we have documented for a couple of times.
As US equities started to show sign of weakness of mediocre earnings season and as Chinese authorities are keen to pump up stock prices (and quite possibly macro data), is there any chance that this massive gap (which now looks like a crocodile mouth) closing?
And if so, will the gap close on weaker US stocks, stronger Chinese stocks, or both?