This may not be the best time to discuss strong markets during what seems to be a major and incoming market correction according to stock market indices options chains. However, when discussing Chinese stocks, there’s always a probability they will remain inferior in any situation. Those who do discuss Chinese stocks with enthusiasm as if Chinese stocks are the next big thing, also show a gross ignorance over Asian markets in general or are spreading Chinese propaganda.
Chinese stocks get a lot of unmerited attention due to the state’s regular efforts to promote its companies abroad. Last year, Chinese government officials also held a series of meetings with a host of big foreign businessmen who tried to convince them to buy Chinese stocks and that the bottom in Chinese stocks was in. Elon Musk was also involved in one of these meetings along with a group of businessmen in the United States.
The real Asian centre stage is not China, it’s India whose stock market exceeded the Hong Kong in size for the first time last year. India’s economic growth is unprecedented, and its market openness and liberal-democracy are making its markets much more attractive than the Chinese markets. From 2009, the Indian NIFTY 50 made up to 782% in returns. China’s CSI 300 (the stock market index that Jesmond Rizzo likes to quote) made only 76% in the same period.
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