Mobius Says China Stocks Face 20% Drop After Rising Too Fast
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Mark Mobius says Chinese stocks have risen too fast after a world-beating rally sent the benchmark equity gauge to its highest level in seven years.
A 20 percent retreat is “very possible,” Mobius, who oversees about $40 billion as the executive chairman of Templeton Emerging Markets Group, told reporters in Hong Kong. The Shanghai Composite Index rallied 90 percent in the past 12 months, the most among 92 global benchmark measures tracked by Bloomberg.