According to the online edition of the magazine Pensions & Investments this morning, the bloom is off Chinese stocks, even as China finalizes preparations for the Summer Olympics. John D’antona Jr. wrote:

The Beijing Olympics start in a month, but for the Chinese stock market, the event is nearly over.

“The Olympics have provided a mild boost historically in terms of stock prices, and China was no exception. But then things fall after the event and you get a subsequent letdown. This has also happened in China. The Olympics are not a major driver there anymore,” said John Chisholm, executive vice president and co-CIO of Acadian Asset Management LLC, Boston.

Emerging markets equity managers are underweighting the Chinese stock market amid concerns over the country’s deflating stock-market bubble, rising inflation and limited corporate profitability…

D’antona talked about emerging markets veteran Mark Mobius and his view on Chinese equities. It seems the “Pied Piper of Emerging Markets” has a different opinion of China than his contemporaries. From the P & I piece:

Mark Mobius, executive chairman at Templeton Asset Management Ltd. in Singapore, wrote in an e-mail to Pensions & Investments: “With the large and growing consumer market, Chinese companies able to access the consumer (are) interesting for us. Also materials companies — natural resources — oil, etc., are of interest because of the growing demand.”

Mr. Mobius holds China Mobile Ltd., ICBC Industrial and Commercial Bank of China, Aluminum Corp. of China Ltd., PetroChina Co. Ltd. and China Petroleum and Chemical Corp. in his $8.37 billion emerging markets portfolio.

Source:

“Olympic glow already fading”
John D’antona Jr.
Pensions & Investments, July 7, 2008

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