It was not a profitable week for the fund, but then neither was it good for the market. The Shanghai Composite Index (SCI) fell 3.38% this week, closing at 2,860.69 points today, down 16.8% from a month ago.
But keep things in perspective: The SCI is still up more than 57% this year. Talk of a bear market is a touch premature. If anything, this correction has been a healthy reminder for speculative investors that investments can go down as well as up. Consider, for instance the recent example of Panda Fireworks (600599.SH), which has – for now – given up its ridiculous speculation-fueled trajectory of the past few weeks.
Of our own holdings, Jiangsu Expressway (600377.SH) was the lesser offender, falling just 0.17% for the week to close at RMB5.79 (US$0.84). The company’s shares were buoyed by news of a net profit of US$141 million in the first half, a 14.58% increase over last year.
China Vanke (000002.SZ) shares, in contrast, fell nearly 10% over the week. Investors didn’t much care for news of a planned US$1.6 billion share sale to finance new developments, given what they see as the fuzzy outlook for the property sector.
The Capitalist Roader Fund is down 33.38% since June 3, 2008. The SCI is down 16.7%.