Wednesday, May 16, 2007 1:28:00 PM
20:28 San Francisco, May 16. The HK Standard reports in Thursday"s edition that institutions may now be cashing out of the Chinese stock market with qualified foreign institutional investors not using their mainland stock quota for the first time since the scheme was launched. The report says that institutions think that China"s stocks are overvalued and that investors are worried over high valuations. The comments come in the wake of ongoing concerns over a bubble in China stocks. China"s stocks fell 4% on Tuesday on fears that China will tighten to curb speculation but also with funds seen flowing out of China on the news that China lifted the level of allowable overseas investment on Friday. Any pullback in China stocks remains a risk to carry trades, particularly in the wake of today"s sharp EUR/JPY pullback.
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