China Is the New Dot-Com

[Guest kumar]

The outgoing head of Hong Kong's securities regulator warned investors against rushing headlong to buy shares in Chinese companies, calling China "the new dot-com" of the investment world....

 

http://online.wsj.com/article/SB10001424052702304259304576372943261984356.html

 

....there has been a rush to Chinese companies" without investors asking the normal questions about their fundamentals, he said, comparing the run-up to the Internet stock boom of the late 1990s in the U.S....Shares of Sino-Forest Corp., a Hong Kong-based tree-plantation company listed in Toronto, have plummeted in recent days after a short seller published research alleging problems with the company's accounting. The company, which has its assets in mainland China, has called the research inaccurate and says it is investigating the allegations....