Merrill Lynch & Co.’s China chairman said investors should pare their holdings in the nation, where the benchmark stock index has rallied 84 percent this year, Bloomberg has reported.
“Valuations are too high and it’s getting out of control,” Liu Erhfei told a private equity conference in Beijing. “This is a good time to exit, which by definition means it’s a bad time to invest.”
Li Ka-shing, Asia’s richest man, and central bank chairman Zhou Xiaochuan have warned that a stock market bubble may be building. A more than doubling of the CSI 300 Index in the past six months has made Chinese stocks the world’s most expensive, at 43 times reported earnings, according to Bloomberg data.