Scary stuff, but at the beginnings of the next bubble - PRChina's B-market shares, Shanghai real estate and such.
I may buy into some Shanghai real estate shares on the B-market (for non-PRC investors only, and not very liquid), as the sames shares trade at 50-80% discount to the A-share market (for PRC domestic investors only, mostly maniac momo gamblers), and when the government merge the two markets, the price should converge. Also PRC seems to be on a different econ curve from the rest of the world. Interest rate is low, housing reform/privatization has been underway for a while, and Shanghai visually stunning.
For example ... LuJiazui B (900932 on Shanghai B market) at US$ 0.496/shr, owns most of the land in Shanghai Pudong - brand new mega city, but
Lujiazui A (600663 on Shanghai A market) at RMB 14.93 (equivalent to US$ 1.79. And yes, the two shares own the same proportion of the underlying company.
Warning, many offshore funds have been waiting for the merger of the two markets for a long time. But the rumor is that ... soon.
But, and a big But, is that China market is totally irrational, at times illiquid has many potential negative issues (I feel mostly non-issues played up by media, but what do I know).
baby.boom.com.hk
Chugs, Jay |
