China stocks may have 'seen the best,' Emerging Alpha says

“We've sort of seen the best; not that it's a bad time for China, it's just that the beautiful days are moving past us,” Marshall Mays, director of Emerging Alpha, said in a Bloomberg Television interview. The index is “pretty expensive still.”

The benchmark Shanghai Composite Index has declined 7.3 percent this year, after jumping 80 percent in 2009, as the government raised lenders' reserve requirements twice to contain inflation and cool the world's third-largest economy. It now trades at 32 times reported earnings, compared with last year's low of 12 times profit in October.

China's economy may grow by an average of about 6 percent annually for the next decade, slowing from 10 percent in the past 10 years, said Mays, who is based in Hong Kong.

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