Today, Feb 27 Tuesday, the Chinese Stock Market got a huge sell off. You can see some rationale from this Seekingalpha article. This sell off also spread to the US market, not surprisingly some of the Chinese ADRs such as HMIN and MR also dropped 10%. Is it the beginning of a bear market? Or merely a correction? I don’t know. Predicating market trend is very difficult, and it’s not my job. One thing I do know is: investing in solid companies and grow with the company.
I will visit Shanghai in couple days, more first hand analysis of Chinese market will follow.