China's Most Beaten-Down Stocks Are Still Too High for Top Fund
- ChiNext valuations are three times higher than Shanghai market
- Tech shares lead China's new year rout after posting 2015 gain
U.S. one-hundred dollar bills and Chinese one-hundred yuan banknotes are arranged for a photograph in Hong Kong, China, on Monday, July 20, 2015. The yuan has proven to be among the more resilient emerging-market currencies this year, having fallen less than 0.1 percent versus the dollar as China cut interest rates and the U.S. prepared to raise.
Photographer: Xaume Olleros/BloombergThe Chinese stocks battered most by this year’s $1.3 trillion selloff are still too expensive for two of the most accurate forecasters of mainland markets.
The ChiNext index, a gauge of smaller Chinese technology companies that sank 24 percent this year, is valued at levels almost three times more expensive than the Shanghai market and still trades at a 2 percent premium over its own five-year average. That’s not cheap enough for Bocom International Holdings Co.’s Hao Hong, who called both the boom and bust in mainland markets last year, and Yuanta New China Fund’s Jeff Yeh, who outperformed 96 percent of peers in the past 12 months.