After the Shanghai index hit a new high in the year, is the Sino US stock market valuation gap still there?

category:Finance
 After the Shanghai index hit a new high in the year, is the Sino US stock market valuation gap still there?


In addition, a shares are relatively cheap. The TTM price earnings ratio of CSI 300 index is 15.6 times. While the standard & Poors 500, Nikkei 225, South Korea composite index, Germany DAX and other indexes are more than 30 times.

According to the trend of TTM P / E ratio of China and the United States stock markets since 2010, the valuation of A-share continues to be lower than that of the United States. After March this year, the valuation of A-share has rebounded, the valuation of US stock has risen sharply, and the valuation gap between China and the United States is accelerating.

Wind data shows that as of December 1, the overall price earnings ratio (TTM, the same below) of the CSI 300 index was 15.6 times, and the average price earnings ratio in the past decade was 12.6 times.

In terms of weighted blue chips, the current overall P / E ratio of Shanghai Stock Exchange 50 index of a shares is 12.36 times, with the historical average of 10.46 times in recent ten years; the component stocks of the Dow index are 29.23 times, and the average p / E ratio in recent ten years is 17.83 times. From the perspective of weighted blue chips, the valuation level of a shares is significantly lower than that of US stocks, and is closer to the bottom area of ten-year valuation than that of the United States.

In terms of small market value companies, since the Nasdaq market is the most successful model of GEM market in the world, we select A-share gem and Nasdaq market for comparison.

As of December 1, the overall P / E ratio of the A-share gem index was 62.23 times, and the average p / E ratio in recent ten years was 52.65 times. The overall price earnings ratio of NASDAQ is 71.24 times, and the average price earnings ratio in recent ten years is 32.47 times. Judging from the current valuation level, the valuation premium of NASDAQ market is more obvious.

Hong Hao, managing director of BOCOM international, believes that the valuation of US stocks is already very expensive, and China and emerging markets will probably outperform the United States for many years to come.

A-share market industry valuation comparison, even from the history of A-share itself, the current A-share valuation is not expensive.

Wind data showed that as of Tuesdays close, the PE TTM was 23.4 times the 10-year average of 131.2%.

From the industry point of view, the current valuation of the banking sector is the lowest, and the latest P / E ratio is only 7.07 times, equivalent to the 10-year average (6.92 times).

As of Wednesdays close, the latest P / E ratios of eight industries were below the 10-year average, namely, agriculture, forestry, animal husbandry and fishery, real estate, steel, coal, communications, retail, machinery and equipment, and insurance.

However, the automobile, food and beverage, port and shipping, computer, medical and biological industries have been above the ten-year average.

Source: Wind Information Editor: Zhong Qiming_ NF5619