Saturday 15 November 2014

Time to relook at Chinese market?


This has been one market which many investors have lost lots of money since it crashed from high of 6000 points to low of 2000 points, and many have avoided or stay away from investing in this market. The market which I was referring to is the Shanghai composite index. 
Let's take a look at the chart below;
From the chart, one would noticed that at 2000, it had been a very strong support level, and that it has been tested many times since 2011. Based on a report by Telegraph, China is one of the cheapest market today comparing with the other major market. 

Let's also look at another chart below;
This chart compares the Dow Jones, SSE and STI. Before 2013, SSE has been on the downward trend compare with the other 2 markets. However, since mid of 2013, it has started to trend upwards while the other 2 markets have been moving sideways. Has the trend change?

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