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Charts: Chinese Stocks Are too Expensive

CNBC.com
Monday, 18 Jan 2010 | 6:28 AM ET

Chinese stocks have become too expensive and are need of a pause at current levels or a "substantial pullback" to make them better value, Robin Griffiths, technical strategist at Cazenove Capital, told CNBC Monday.

Charts: Shanghai Stocks Look Expensive
The Shanghai Composite Index could suffer a short-term pullback and is looking expensive at current levels, Robin Griffiths from Cazenove Capital told CNBC Monday. Griffiths also takes a technical look at Caterpillar and William Morrison.

"I think we have run too hot, too soon and we do now need either a longer pause or a substantial pullback to make it better value," Griffiths said while taking a technical look at the Shanghai Composite Index.

"I'm a tiny bit worried from a short-term perspective… technically it isn't behaving so well," he said.

From a historic perspective the Shanghai index is quite expensive, he added.

China should no longer be seen as an emerging market, but one that has definitely emerged, according to Griffiths.

"I think there is going to be a better, later time to enter this market even if the big picture stays the same," Griffiths said.

Watch the full interview with Robin Griffiths above to see his views on Caterpillar and William Morrison.

For the Investor:

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