Techcrunch posted an interesting article on the Chinese market. Looking at these charts and the stats, I'd say things are looking pretty dicey there. Here are some stats that came out of a Morgan Stanley Web 2.0 presentation (it was done by Mary Meeker who is an expert at inflating and possibly deflating bubbles).
- In 2003 the combined market cap of Chinese companies was $5 billion today it's $50 billion.
- Of the 20 most valuable companies in the world as measured by market cap, 41% are Chinese.

Of couse, I've read a lot of discussion on China on BestCashCow. Thomas Bivens apparantly sold all of his China Mobile stock a few weeks back.
You can watch Mary Meeker's presentation below:





