China Bulls Adopt Price-to-Whatever Ratio as Equities Surge
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The signs of a Chinese equity bubble are visible just about everywhere Hao Hong looks.
The chief China strategist at Bocom International Holdings Co. points to soaring price-to-earnings ratios, the shrinking yield advantage that stocks offer over bonds and the fact that mainland-listed equities now trade at a 34 percent premium over nearly identical shares in Hong Kong.