Oct 25th, 2007 by Martin Lee
A week after Warren Buffett sold its entire stake in Petrochina, Warren Buffett warned investors to be cautious about the Chinese stock market, which has risen nearly six times in the last two years.
During a visit to Dalian in north-east China, Mr Buffett said he has always been skeptical about markets that had risen as sharply as Chinese shares have.
We never buy stocks when we see prices soaring. We buy stocks because we are confident of the company’s growth. People should be cautious when they see prices rising.
Buffett is not the only person who has warned about the China market. Other notable figures include Hong Kong tycoon Li Ka-shing and Alan Greenspan, former chairman of the US Federal Reserve.
Now the question on everyone’s mind is probably, “When will this bubble burst?“