9% stock market sell-off in China

From China Stock Market

China Stock Market Crash in 2007?

Will Chinese stock market crash in 2007 is a question lingering in many people's mind ever since the stock market's 9% sell-off on Feb. 27, 2007.

On one hand, people were citing strong economical (i.e. company earnings) growth, very high savings rate, limited investment options, and large portion of individual investors v.s. institution investors in China etc. as reasons that the China market will continue to rise. The short-term fluctuation is just a short-term correction.

On the other hand, China stock market bears are saying that the valuation is simply too high, the quality of earnings are also in doubt in a sotck market that's still developing its rules and regulations, and market has risen so fast that it has to come down. Even former Fed chairman Alan Greenspan has commented his worry about China stock market.

As always, individual investors need to be vigilant about their portfolio exposure in Chinese stocks.