20x PE is still reasonable, even for banks. ( I know, but they are Chinese banks). Short to mid term it might adjust, as the pull back of SH and SZ exchange will create panic in foreigh investors, like it did in Feb.
My (planned) strategy with FXI option is to sell out of money puts($95 or $100 at this point), and invest cash in money market. If it go higher, my combined return from writing puts and money market will be approximately 6%, not bad for sitting on the sideline. If it dives, I will lose a little on the put, but I got the opportunity to build up position at lower cost.
Hope it works out well.
My (planned) strategy with FXI option is to sell out of money puts($95 or $100 at this point), and invest cash in money market. If it go higher, my combined return from writing puts and money market will be approximately 6%, not bad for sitting on the sideline. If it dives, I will lose a little on the put, but I got the opportunity to build up position at lower cost.
Hope it works out well.