Talk of a bubble in Chinese Internet stocks has abounded recently and not without reason. The Shenzen Composite Index, where most of the tech stocks are listed, is up 190 percent over one year.
“There are very high price earnings ratios of the technology stocks trading in China right now. … Even an early stage venture capital company would be valued at $100 million. These are unheard of numbers. That’s why people say it could be a bubble in the brewing,” said Alan Lau, senior partner at McKinsey & Company in Hong Kong.
