source: http://robinhosmartrade.blogspot.sg/2014/04/outlook-of-china-market.html
Monday, April 28, 2014
Outlook of China Market
The China stock market has been declining for the past 5 years since it topped in 2008 during the peak of the global financial crisis. While the charts is showing that the technical could be bottoming investors are still concern about the structural challenges facing china. It is going to take some time before it becomes clear whether China is succeeding in its pursuit of reform, in the meantime China has to navigate the minefield of defaulting "trust" wealth product, excessive local government debts, shadow banking loans and the like. The key risk this year could be the weakening of the property market which will affect property developers with high financing leverage. Many are asking whether it is time to start investing in the current undervalued China stocks. I expect a big "flush" triggered by economic event that will take the China stock index close to the global financial crisis low before the China market bottom. It is important to watch the chart lines!
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