Wikinvest Wire

Xie: Chinese stocks are a Ponzi scheme

Monday, August 31, 2009

Former Morgan Stanley Chief Asia Economist Andy Xie says the Chinese stock market is still in "deep bubble territory", noting that the Shanghai Composite Index would have to fall another 25 percent to get to fair value.

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He also noted that real estate sales account for 10 percent of GDP and half of all local government revenue. Earlier today, China's stock market fell seven percent, the sharpest decline since June 2008, and is now down about 23 percent from the early-August peak.



Anonymous said...

lol... broken clock right twice a day... if this guy was an investor he would go broke in a week... i guess that why he's a talking head... i agree that the chinese market is a ponzi scheme... but what's the fair value of a ponzi scheme? can you really put a number on it?


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