Salient to Investors:

Shanghai index down 6.8 percent since 2012 high on March 2, trades for 9.9 times estimated earnings versus five-year average of 17.8. Health-care stocks trade at 20.3 times estimated profit versus 10.9 for the CSI 300.

Mao Sheng at Huaxi Securities says it’s difficult for stocks to rise with market liquidity.

Gigi Chan at Threadneedle Investments said basic goods stocks’ valuations are stretched and competition is fierce, so there are more csi risks, said he is finding more interesting ideas in the discretionary space.


Edmund Harriss at Guinness Atkinson Asset Management recommends holding Chinese stocks and building positions gently.

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