Has the fat lady sung?

The Shanghai Composite Index sank 6.4 percent to 4,478.36 at the close on Friday. The gauge lost 13 percent this week, entering a correction after falling more than 10 percent from its June 12 high. About 400 Shanghai shares fell by the daily limit as a gauge of volatility jumped to the highest since 2009.

Strategists at BlackRock Inc., Credit Suisse Group AG and Bank of America Corp. all issued bubble warnings this week after the market value of Chinese shares jumped by more than $6 trillion in 12 months. Fueled by record numbers of novice investors and an unprecedented $363 billion of margin debt, the median stock on Chinese bourses is valued at 95 times earnings, versus 68 at the height of the nation’s equity mania in 2007. [Link]

This is a bonus link – Chengdu’s Commercial Property Oversupply, High Vacancy Rates, etc.


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