If Chinese stock market is a bubble, how about the US stock markets?
The US stock market is already a massive bubble, held up by massive fiat currency printing and the promise of a vaccine. Besides not everyone is high value. You think United Airlines, Hertz and JC Penney are good stocks to buy? The bubble in US stock market is also held up disproportionately by tech stocks, especially FAANG.
The Chinese stock market is a bubble but there is no massive printing to hold up the bubble, so it would naturally deflate. Cycles of rises and dips are to be naturally expected and this is healthier for stock market in the long run. Dips provide you with buying opportunities. It should be added that the recent falls also sounds much like profit taking to me.
However, Netease and Tencent prices are still at six month high and so is Alibaba.
I am trying to see who is the equivalent of FAANG to China. So far I use Tencent and Netease as barometer.