The booming Chinese stock market, up more than 100% this year, looks very risky now because major Chinese companies are valued at big premiums to comparable American companies.
Berkshire Hathaway Chief Executive Warren Buffett recently urged investors to be “cautious” on Chinese stocks, saying Berkshire doesn’t buy when prices are “soaring.” Mr. Buffett lately sold — at a huge profit — Berkshire’s 1.3% stake in PetroChina (PTR), China’s largest energy company.
Read the full article at Wall Street Journal.
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