China Tells

A comparison between China’s equity market and that of Saudi Arab’s shows more potential downside of China’s equity market. Saudi Arab’s equity market started to climb up around 2000 and continues to the top in 2008. During 2008 Saudi’s property bubble burst badly, which dragged the equity market down heavily. A comparison between the two equity markets shows that after the property bubble bursts, there is a long way for the equity market to go down, and there is potentially more downside for the current China’s equity market.

如果将中国和沙特的股市相比，会得出很有趣的结论。沙特阿拉伯股市在08年达到顶峰，同时房地产泡沫破裂。股市和房市经历了一段痛苦的收缩期，特别是股市跌去了80%左右。从这方面的历史经验看，中国的股市可能还有下跌的空间。