Recently, I have received several emails asking what's my take on Chinese Equities. To be dastardly honest, I do not know as I am not vested in any Chinese Equities; I am not sure if any of the brokerages offer Shanghai or Shenzhen stock exchange trading services..
But I must say I taken (by surprise) the huge gain made by the Chinese stock market, the SSE rose from a low of 2000 last year to 5023 as of now. I understand the SSE has been rather volatile of late, moving down and up for a total range of few hundred points?
Many commentators, most famous being Bill Gross, have called for a short of SSE. Some Chinese brokers have restricted access to some stocks by forcing punters to pay cash up front. Of late, my retailers have been asking "how to gain access to SSE?", "how to ride the exuberant SSE", "I want a share of SSE gain" etc.. I strongly urge these people to think twice or thrice as the stock market top or any top of any stock is often marked by extreme volatility (remember ABL?), do not get caught with your pants down and dont try to board the train now (as I foresee that the top is near)
I may be wrong as I am personally not vested (long or short), and never have been vested in Chinese equities, minus local S-chips, so I might have to eat my words but please do exercise caution. I hope that all my readers and people who emailed me would exercise their sound judgement and stay safe. All the best! Disclaimer applies.. Huat ah!