I found a chart of the Shang Hai stock exchange composite index

[PerfectSage]

http://stockcharts.com/charts/gallery.html?%24ssec


Looking at a 10 year chart. China was in a bear market from mid 2001 to mid 2005 and a new bull market was confirmed by a golden cross of the 50 and 200 day moving averages in January 2006. Whereas ours started in October 2002 and confirmed in spring 2003. So the big move in 2006 for China stocks is simular to our 2003.

So I don't think the 9% price drop was fatal for the the Chinese bull market. Obviously they're gonna have an intermediate term correction and it will take several months before the Shang Hai composite index breaks out to new 52 week highs.