By Abhishek VIshnoi , Bloomberg Markets Live reporter and strategist
China’s inexpensive equity market went from one of the world’s worst to one of the best in mere weeks after the country’s stimulus blitz. But the argument that valuations are cheap is quickly losing strength.
After the recent sharp rebound, valuations are no longer below average. The continued decline in long-term profitability of China Inc., reflected in the so-called return on equity, means the nation’s stocks would continue to command a lower valuation.
