China is much in the news of late. Talk of the country’s growing economic heft is hard to escape. However until recently its stock market was no great shakes. Indeed compared to the rest of the BRIC countries since the market bottom in March 2009 the Chinese stock market has been a notable laggard. Performing more in line with the US stock market.
Now that the Shanghai index is moving up once again how should we interpret it? Some say China serves as a leading indicator of the US market now. This might very well be the case, but Michael Pettis warns us that the Chinese stock market is still very much a work in progress. Therefore reading too much into China’s stock market moves may be counterproductive. In today’s screencast we look at the world’s third largest stock market.
Posts mentioned in the above screencast:
China climbing the charts. (Abnormal Returns)
A bull market in…China? (Bespoke)
Comparing the BRIC markets. (StockCharts)
China continues to forecast a strong US equity environment. (Pragmatic Capitalism)
The Shanghai market isn’t really predicting anything. (China Financial Markets)