— This is the script of CNBC's news report for China's CCTV on June 23, Tuesday.
Welcome to CNBC Business Daily, I'm Qian Chen.
On Tuesday, China's Shanghai Composite experienced a choppy session after an extended weekend.
The Shanghai bourse bounced back by 2% after last week's steep correction, which saw the benchmark index slump more than 13 percent - its worst showing since the global financial crisis in 2008.
Yang Liu, CIO and Chairman of Atlantis Investment Management, says she believes the correction is healthy.
[Yang Liu, CIO and Chairman, Atlantis Investment Management] "This correction is well expected. However, we thought there could be 1000 points correction, between 4000 to 5000 points. So it touched upon 5000, a little bit higher, then we came off. To me, in the middle of this year, it's very healthy."
Some analysts expects the correction to continue in the short term as the country's securities regulator attempt to cool the market.
[Yang Liu CIO and Chairman Atlantis Investment Management] "(The whole market evaluation) is just about 30 times, but if you look at the blue chips, the dinosaurs, they are trading 15 times, then you look further down, China's top banks, trading 7 or 9 times. But if you look at the, we call it the "jam market", they are really crazy. They are over, over, listen, 150 times."
Some with an appetite for volatility would probably enjoy this year's ride on ChiNext, which is China's market for startups and other companies seen as high-growth.
The index, known as China's "Nasdaq", is now trading on average at over 150 times 2015 earnings, according to Yang Liu.
Some are worried that the crazy valuation might bring the next "Nasdaq moment" to Shanghai.
For some bearish analysts, including Jonathan Garner, MD and Chief Asia and EM Equity strategist of Morgan Stanley, are advising their clients to not continue chasing China.
[Jonathan Garner, MD & Chief Asia and Emerging Market Equity Strategist, Morgan Stanley] "It's just now is not the greatest time to chase China, particularly relative to other markets, because it has outperformed out of 4000 basis points on the MSCI index, versus other EM. In fact, it's never outperformed so much over the years that it has just done now. So we are not saying underweight here, in fact, we have other markets that we have underweight on, but we just rather take towards market underperformance this year like India or Taiwan, those markets, we are advising clients to pick up right now."
- CNBC's Qian Chen, reporting from Singapore.
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