The Shanghai Composite Index (SCI) retreated after last week’s excitement – the little guy was all tuckered out. Of course, retreated is a relative term: It closed at 3,260.69 points today, meaning the market is still up more than 79% this year.
Still, there seems to be a growing realization in the market that this year’s bull run won’t last forever. Concerns about bad debts aren’t going away, and the central bank’s dogged determination to maintain a moderately loose monetary policy is a clear sign that Beijing isn’t breaking out the post-downturn champagne.
Jiangsu Expressway (600377.SH), which closed today at RMB6.47 (US$0.94), saw a brief spike on Wednesday on relatively high trading volumes, but over the week it was mostly unchanged.
The sedate performance of Jiangsu Expressway shares is interesting when contrasted with those of newcomer Sichuan Expressway (601107.SH), down 4.1% this week despite ending today up 2.85% from Thursday’s close. It will be interesting to see how long the stock’s volatility lasts (maybe for a while yet; the company’s H-shares are up 119% this year).
The Capitalist Roader Fund is down 33% since June 3, 2008. The SCI is down slightly more than 5%.