Benchmarking China stock market, while it has dropped from its highest of 6000 to the lowest of the year of 1700, and now rebound back passing 2300, with the increasing domestic consumption and the sustainable GDP growth, we believe China government should take not longer than 10 years to hit the 6000 points. i have mentioned that when it is below 2000 points.
Now the potential has drop from 200% to 160%. Of course, 6000 points would not be its permanent resistance. 160% over the next 10 years, which is equivalent to 10% annual return by 10 years is what i think convincing. Likewise the China 'H' Share from now 7500 to highes 20000 points. Does China need 10 years to be back to 6000 points?
Personally i say 5 years; and we have reason to say you will enjoy the 160% return in less than 3 years in Public Mutual investment. Furthermore, while most of the regional market is at PER of less than 10x, there will be bunch of potential counters traded at tremendously low price. And there will be more to come to further discuss on the potential in China Great Kingdom.
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