China’s world-beating rally might be a “bubble” ready to burst, said Alan Greenspan, the former U.S. Federal Reserve chairman, and he is supported in this view by Li Ka-shing, Asia’s richest man. The billionaire investor Warren Buffett, chairman of Berkshire Hathaway, last month urged investors to be ‘cautious.’

Tim Leung, a fund manager at IG Investment in Hong Kong, said, ‘If there is a slump in China, the risk of investing in some companies whose earnings are closely linked to the market will increase. When there is a slump in the market, retail investors do much less trading.’ Tim Leung said he did not own China Finance shares.’

All this because China Finance Online may lose its rank as the best-performing foreign company listed in the United States.
American depositary receipts for the company, China’s biggest provider of online financial data, have dropped more than 30 percent this month, as the nation’s benchmark CSI 300 index fell 12%.

Li Ka-shing, chairman of Hutchison Whampoa, said in May that the Chinese stock market ‘must be a bubble.’

Asked if China was in a state of ‘irrational exuberance,’ Greenspan told a conference of insurance executives in Boston on Oct. 30: ‘I think so.’
Source: International Herald Tribune