Betting on red: Chinese stock markets ‘overvalued and facing inevitable decline’

TO say that the Chinese love to gamble would be a gross cultural generalisation. Then again, one could be excused for assuming as much, considering how the world’s gaming industry is going after China’s gamblers.

From Las Vegas to Macau and Monte Carlo to Sydney, gambling magnates are luring more Chinese their way. Gambling, you see, is illegal in mainland China.

Then again, who needs baccarat tables and roulette wheels when you have China’s stockmarket? China’s equity exchanges have long had more in common with casinos than markets. Investors were reminded of that on January 31 when China’s stocks tumbled the most in at least 21 months after a lawmaker said shares were overvalued.