It means the average market cap of companies on the chinese stock market was at 70 months of earnings. For example, a company making 100 a month would be valued at 7000 dollars at 70 P/E, while only at 2130 at 21.3 P/E.
Basically, what he's insinuating is Chinese companies were vastly overvalued and it shows in this basic metric.
What does that mean?
It means the average market cap of companies on the chinese stock market was at 70 months of earnings. For example, a company making 100 a month would be valued at 7000 dollars at 70 P/E, while only at 2130 at 21.3 P/E.
Basically, what he's insinuating is Chinese companies were vastly overvalued and it shows in this basic metric.