Credit Suisse Says Chinese Stocks are Overvalued by More Than 20 Percent
A market out of sync.
Shanghai has lofty buildings and even loftier stock valuations.
Photographer: Tomohiro Ohsumi/BloombergThis article is for subscribers only.
Despite pulling back ever so slightly over the past week, the Shanghai Composite Index is still up a staggering 126 percent over the past 12 months. Thus, it's no surprise that investors and traders are asking if the exchange is broadly overvalued.
In new research, Credit Suisse argues that it is -- and by a rather large amount. Here are analysts Alexander Redman and Arun Sai: