China not the best place to find bargains despite market selloff

Hong Kong

IT'S going to take more than the world's deepest stock market selloff to turn China into a destination for international bargain hunters.

Even after a 40 per cent tumble in the Shanghai Composite Index over the past 12 months, valuations for China's domestic A shares are three times as expensive as every other major market worldwide. The median price-to-earnings ratio on the country's exchanges is 59, higher than that of US technology shares at the height of the dotcom boom in 2000.