When China bulls tire of taking a product’s price, multiplying by 1.3bn and getting excited, they turn to the stock market. Imagine, they say, if Shanghai’s A-share market was open to outsiders. Multiply the earnings of companies with 1.3bn customers by a preferred price/earnings ratio, and you have the world’s biggest market. Fair enough in theory. But China is where theories go to die. Revived plans to link the Hong Kong and Shanghai exchanges will be a practical test.
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