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Asia, China: How bad is the Asia problem? You might have heard that HK HSI down down from 16,000 to 8,500 in less than 6 months. Looks like China has not been affected yet. But look at China ADRs trading in NYSE. ZNH and CEA were down more than 50% since Oct 27; and down 60-70% from its late August peak. Many other China ADRs have the same faith. Last week while HK lost about 20%, average Chinese ADR down 40+%. China is the closest nation to SEA, if these ADRs show no sign of rebound, you can imagine how bad is Asia's problems, including China. You can argue that Chinese currency is under devaluation pressure, and many other factors. My point is that if China, the closet neighbour of SEA, is affected in such a degree, that high-tech firms with exposure to Asia might have same faith, although less severe as we wish. |
