Live on Bloomberg TV

00:00VALUATIONS STILL TOWER OVER OTHER MARKETS. WE HAVE YVONNE MAN TAKING A CLOSER LOOK AT THE STORY. IS IT TOO EARLY TO JUMP BACK IN? YVONNE: THE GOVERNMENT INTERVENTION WE HAVE SEEN COMING FROM CHINA HAS CONTINUED TO ELEVATE THE STOCK PRICES DESPITE THE FACT THAT PROFITS ARE SHRINKING. SHANGHAI COMPOSITE FIRMS DROPPING 13% IN THE YEAR. THAT IS INCLUDING THE JANUARY AND JUNE PLUNGES, STILL WELL BELOW THAT 3000 PSYCHOLOGICAL LINE IN THE SAND. INVESTORS NOT LOOKING TOO UPBEAT RIGHT NOW. IF YOU COMPARE CHINA'S DOMESTIC MARKET TO THE REST OF THE WORLD, WE CAN SEE VALUATIONS ARE NOT CHEAP, THREE TIMES MORE EXPENSIVE AS EVERY OTHER MAJOR MARKET WORLDWIDE. THE MEDIAN RATIO IS NOW 59 ON THE NATION'S EXCHANGES, HIGHER THAN MOST OF THIS COUNTRY'S SEE THERE ON YOUR SCREEN. IT IS HIGHER THAN U.S. TECH SHARES AT THE HEIGHT OF THE DOT COM BOOM. CORPORATE DEFAULTS ARE SPREADING, THE YEN TRADING NEAR A FIVE-YEAR LOW. PERHAPS THE CLEAREST INDICATOR WHEN IT COMES TO THE DISCONNECT BETWEEN THE DOMESTIC MARKET AND THE INTERNATIONAL MARKET IS THAT A SHARE AND H SHARE PREMIUM. YOU STILL SEE THE PREMIUM ON THE A SHARE DOMESTIC MARKET IS 34% TO THE IDENTICAL COUNTERPARTS IN HONG KONG. SOME SAY WE COULD SEE OF FURTHER DOWNSIDE. ON THE MENTAL'S ARE STILL POOR, AND PERHAPS GETTING WORSE. ANGIE: NOT EVERYONE IS CONCERNED ABOUT THESE VALUATIONS, RIGHT? YVONNE: THAT'S RIGHT. ROCHER'S AND ANALYSTS STILL SEE GAINS IN THE SHANGHAI COMPOSITE IN THE NEXT 12 MONTHS OF 13%. THE CATALYST HERE , THEY SAY THERE IS A PROSPECT OF A HONG KONG SHENZHEN CONNECT , AND MAINLAND SHARES ENTERING INTO THE MSCI INDEX AS WELL. THAT COULD BE SENTIMENT

No schedule data available.

Chinese Stock Valuations Still Tower Over Rest of World

It's going to take more than the world's deepest stock market selloff to turn China into a place for bargain hunters, because even after a 40% plunge on the Shanghai Composite in the last 12 months, valuations still tower over other markets. Bloomberg's Yvonne Man reports on "First Up." (Source: Bloomberg)

More From First Up
All episodes and clips

Bloomberg Markets
"Bloomberg Markets" is focused on bringing you the most important global business and breaking markets news and information as it happens.
More episodes and clips