Salient to Investors:
Deng Wenyuan at Soochow Securities said the economy may only show real improvement from Q2 or Q3 2013.
The Shanghai Composite trades at 9.6 times estimated profit for 2012 versus the 17.8 average since 2006.
Hao Hong at Bank of Communications said stocks are due for a technical bounce but the index may fall 5 to 10 percent as prospects for monetary easing diminish and US budget concerns sour sentiment. Hong said the index is falling at a measured speed, most likely countered by government purchases – 2,000 does not seem like a final bottom, though valuation is low.
Read the full article at http://www.bloomberg.com/news/2012-11-22/china-s-stock-futures-decline-before-release-of-flash-pmi-data.html