Sometimes i am bullish in China economy but not in the stock market
Why hasn't the Chinese stock market done better? Because they keep issuing more stock. (wsj.com)
I am like any other man. All I do is supply a demand.
Al Capone
From Leo Almazora, 27th may
Zweig noted that although China has held the mantle of fastest-growing economy for decades, its stock market peaked in October 2007, and has since trended downward to the tune of 0.2% in average annual losses; that means it’s lagged the S&P 500 by eight percentage points per year, counting reinvested dividends. Citing FactSet research, he said a US$10,000 investment in the MSCI China stock index would have ended just shy of US$19,600 over the past 10 years, as opposed to nearly US$39,700 from the same initial investment in the S&P 500.
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An analysis performed by L’Her and his colleagues showed that between 1997 and 2017, China’s market capitalization ballooned at an average annual rate of 27.5%, with 26.5% coming from the issuance of new shares and a measly 1% coming from capital appreciation.
In the rest of the world the situation is different
As private equity firm Pantheon puts it in a new report on the subject, “there is a disappearing act that many of us have missed.”
The data are striking. Globally, the number of publicly listed companies has fallen from 10,853 in 1996 to 5,985 last year, a 45% decline, according to data provided by Pantheon. In the U.S, the number of stocks has fallen by half in the past 20 years, from 7,322 to 3,671 last year.
if i became very bullish in the Chinese stock market pls give me a call and dissuade me. Not in the indexes perhaps with a local manager it can work.
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