^ Yeah, I saw this guy on Bloomberg TV this morning.
He’s one of those guys (minority) who thinks we need to see SHComp @ 2500 to buy. That seems overly bearish, it’s trading below historic averages at a time when China is opening their capital account and reforming SOEs (which make up most of the index by market cap). Lots of upside, with a floor in place at 3000 by the govies.
I’ve got funds set aside to do one more round of buying if we hit that level, but nobody has that as their base case except this dude.
whats the word here
^ Equities are undervalued, corporates are overvalued. They need to rebalance back into stocks.
But this is the Chinese way – crowd into a space and drive prices into crazy land, then someone yells SELL and off they go to the next asset class. Real estate, stocks, bonds, repeat! 
china-takes-riskiest-step-by-scrapping-deposit-rate-controls
Oh score! Yet another totally awesome free-thinking dude ripping into Bloomberg for inundating the West with incorrect information about the Chinese economy. Bloomberg are really the masters of Western economic propaganda, which is sad, the terminals are great, but their “news” is just brainwashing.
http://www.bloomberg.com/news/videos/2015-11-02/checking-the-health-of-the-chinese-economy
Yeah, but his claim that there is no evidence of overstated GDP is a little suspect. I get the idea of what you’re saying but I think the truth is somewhere in the middle of everything is fine and everything is a disaster.
http://www.reuters.com/article/2010/12/06/us-china-economy-wikileaks-idUSTRE6B527D20101206
"China’s GDP figures are “man-made” and therefore unreliable, the man who is expected to be the country’s next head of government said in 2007, according to U.S. diplomatic cables released by WikiLeaks.
Li Keqiang, head of the Communist Party in northeastern Liaoning province at the time, was unusually candid in his assessment of local economic data at a dinner with then-U.S. Ambassador to China Clark Randt, according to a confidential memo sent after the meeting and published on the WikiLeaks website.
The U.S. cable reported that Li, who is now a vice premier, focused on just three data points to evaluate Liaoning’s economy: electricity consumption, rail cargo volume and bank lending.
“By looking at these three figures, Li said he can measure with relative accuracy the speed of economic growth. All other figures, especially GDP statistics, are ‘for reference only,’ he said smiling,” the cable added."
Sinosteel’s logo looks an awefully lot like a middle finger. Ironic given their actions in the market.
China.
It is apparently hard to be a fund manager in China these days:
Fund managers say regulators have been telling them what they like and don’t like via warning letters from stock exchanges to brokers. Piling on buy orders when stocks are rising is bad. Dumping shares when the market is tanking also gets a warning.
Shorting index futures—to bet on falling markets or simply to hedge against stock portfolios—is now frowned upon. Sidney Yu, a hedge-fund manager in Shanghai, said he hasn’t been trading in recent months. “I don’t want to get arrested,” said Mr. Yu, who manages the equivalent of about $188 million in assets.
I have joked sometimes about China’s response to stock market volatility, which seems to consist of banning selling, but you can see the philosophical point here. Any time you buy stock, that has two effects: One, it tends to push the price up, and two, you own the stock and benefit from the rising price. (Vice versa for short selling.) But pushing prices around to benefit your own position is the definition of manipulation. So if regulators are looking for market manipulation, any trading at all can be made to look, at least superficially, like possible manipulation. So maybe it’s safest not to trade at all.
These are problems that presumably the Chinese capital markets will work out over time, though on the other hand no one is all that clear on what manipulation is in the U.S. or the U.K. either. Elsewhere, China’s stock exchanges have doubled margin requirements to “help prevent systemic risks from building in China’s financial system.” China’s interventions in currency markets have become more subtle. And here is George Magnus on “China’s awkward economic transition”: “A knowledge-information-innovation economy requires access to information and openness, neither of which are on offer.”
Classic ‘Fooled by Randomness’ case. Every year there are fund managers that outperform. It’s pretty much guaranteed given the large pool of fund mangers. Very few can consistently outperform year after year though and given this guy’s short-term record, obvious overconfidence and magnified returns (trading futures), I’d wager he’s going to implode spectacularly.
That was my thought.
Anyone notice that the fund’s name was “Yourong funds”
Why invest with him? Because Yourong, Dude!!
i miss PA, maybe its his fund
I worry about that guy. Probably on state TV making a forced confession right now.
This crossed my mind too, but then I read that the guy was bearish on China for the next few months at least, and then I realized it couldn’t be PA.
no ASHR in the MSCI
Any signs of PA these days?
i miss that guy…he was cool that guy.