A Bottom for Chinese Stocks
Donald Straszheim, a long-time China watcher at Roth Capital Partners, calls the bottom for Chinese shares. He cites a recently announced lowering of taxes on stock trading, known as the stamp duty tax, that comes as a long bout of fiscal tightening is finally starting to slow.
Interest rate hikes, tighter reserve requirements, rising inflation, worldwide market turmoil, and questions over global growth have all played a part in sending shares slumping mightily this year. The Shanghai Composite Index jumped almost 10 percent on the news after slumping to near 3000—barely half its value just six month ago. At its peak on Oct. 17, 2007, the index topped out at 6124.
"With equities down 38% year-to-date, and down 47% from the October peak, China equities have become much more attractive," Straszheim writes.
Tools: 
Share
|
| Comments (0)
advertisement
Add your thoughts
Your comment will be posted immediately, unless it is spam or contains profanity. For more information, please see our comment guidelines.