China Stocks: Tick, Tick, Kaboom? (BusinessWeek Online)

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China Stocks: Tick, Tick, Kaboom? (BusinessWeek Online)

BusinessWeek Online - By any reasonable measure, China's domestic stock markets have moved into Alice in Wonderland territory. The Shanghai Stock Exchange composite index has shot up 50% this year, following a 130% gain in 2006. Even though the so-called "A-share" mainland companies are now trading at rich multiples of about 30 times projected 2007 earnings, Chinese investors continue to shovel more of their savings into stocks, betting this party is anything but over.

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