One of my good friends just called me today with a crude joke.

“What’s the definition of a stock market bubble,” he asked? When I didn’t answer, he replied, “When college students invest their tuition money into the stock market. It’s not funny at all but that’s exactly what has happened in China where a Chinese University banned 440 students from taking their finals because they used their tuition money to invest in the stock market. According to the article in Reuters, the University is owed about $2 million in tuition fees.

So, is it time to take a deep breath on the Chinese stock market? Have we not learned anything from the tech disasters of the late 90’s? When there be’d greed, there be’d stupidity (grammatical errors for effect).

I was reading an interestiing article in the Asian Times. Here’s the main point that I think investors should really begin to pay attention to now.

If the Chinese Government really intends to open their markets, then doesn’t that mean that Chinese consumers should have the ability to invest abroad? Since most of the U.S. dollars flowing into China have been invested because of the opening of the Chinese markets, then what happens to prices of Chinese stocks when the Chinese citizen begins to take advantage of their new found freedom to invest abroad?.

Can anyone answer that?