Chinese stocks have gone from being a darling of speculators in the beginning of this year to become toxic assets. The whole episode is a slap in the face of any efficient market fanatic as within a span of 1 year the small cap index (csi 500) as a whole has been valued in ranges of 30 times earnings vs 80 times earnings and back to about 30 times earnings. If this is called rational market I dunno wtf is irrational! I had written in my post in April this year “Chinese markets are headed for a sharp correction”  and the primary rationale behind the post was the speed of the rise. Of course valuations ended up going to crazy extremes too and in the end the whole thing collapsed even faster than it had risen. The strange thing in this bull run was that the H share ......