Comments on: More on China’s urbanization http://www.dinocrat.com/archives/2007/08/26/a-peak-into-chinas-urbanization-2/ Thu, 09 Feb 2012 11:49:05 +0000 hourly 1 http://wordpress.org/?v=3.1.3 By: gs http://www.dinocrat.com/archives/2007/08/26/a-peak-into-chinas-urbanization-2/#comment-301840 gs Mon, 27 Aug 2007 05:26:14 +0000 http://www.dinocrat.com/archives/2007/08/26/a-peak-into-chinas-urbanization-2/#comment-301840 This is interesting: the P/E of the FTSE/Xinhua 25 is <a href="http://www.nasdaq.com/aspxcontent/etfprofile.aspx?Ticker=FXI" rel="nofollow">22</a> (click on the 'Portfolio' tab at the link). <a href="http://www.nasdaq.com/aspxcontent/etfprofile.aspx?Ticker=ewj" rel="nofollow">Japan's</a> is 19. The <a href="http://www.nasdaq.com/aspxcontent/etfprofile.aspx?Ticker=spy" rel="nofollow">S&P 500's</a> prospective P/E is 15; the <a href="http://www.nasdaq.com/aspxcontent/etfprofile.aspx?Ticker=qqqq" rel="nofollow">Nasdaq's</a>, 21. The <a href="http://www.nasdaq.com/aspxcontent/etfprofile.aspx?Ticker=iev" rel="nofollow">S&P Europe 350</a> comes in at 14. <b>If</b> China's growth is real, it isn't insanely priced. (Jack recently quoted the <a href="http://www.dinocrat.com/archives/2007/08/20/remember-shanghai-4000/" rel="nofollow">WSJ</a>:<blockquote>Few consider Chinese stock prices cheap: Shanghai-listed shares trade at an average 55 times last year’s earnings. </blockquote>This number might be compatible with the Morningstar result I cited if Morningstar weights the average by market cap and the Journal does not.) This is interesting: the P/E of the FTSE/Xinhua 25 is 22 (click on the ‘Portfolio’ tab at the link). Japan’s is 19. The S&P 500′s prospective P/E is 15; the Nasdaq’s, 21. The S&P Europe 350 comes in at 14. If China’s growth is real, it isn’t insanely priced.

(Jack recently quoted the WSJ:

Few consider Chinese stock prices cheap: Shanghai-listed shares trade at an average 55 times last year’s earnings.

This number might be compatible with the Morningstar result I cited if Morningstar weights the average by market cap and the Journal does not.)

]]> By: gs http://www.dinocrat.com/archives/2007/08/26/a-peak-into-chinas-urbanization-2/#comment-301836 gs Sun, 26 Aug 2007 17:00:15 +0000 http://www.dinocrat.com/archives/2007/08/26/a-peak-into-chinas-urbanization-2/#comment-301836 Wishing the Chinese well, I share Dinocrat's wonder and concern at the pace of their development. Iirc I've previously commented that their trajectory toward modernity cannot be considered robust until they've passed one or two business cycles. Wishing the Chinese well, I share Dinocrat’s wonder and concern at the pace of their development. Iirc I’ve previously commented that their trajectory toward modernity cannot be considered robust until they’ve passed one or two business cycles.

]]>