Chinese Stocks to Trail World for Fifth Year: Chart of the Day
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Chinese stocks may trail global peers for a fifth straight year as higher borrowing costs hurt earnings and a flood of initial public offerings divert funds from existing shares, according to Bank Julius Baer & Co.
The CHART OF THE DAY shows the Shanghai Composite Index’s lowest price-earnings ratio on record versus the MSCI All-Country World Index has failed to lure investors. The Chinese benchmark gauge has underperformed the global measure every year since the start of 2010, the lower panel shows, while the number of new accounts opened to trade shares in the most-populous nation has dropped 94 percent from the 2007 peak.