Did the Chinese Government go for a long Yum Cha?

When I witness an 8.5% plunge in Chinese equities (Chart 1) for no major reason, it actually makes us feel lucky to be primarily investing in the serial underperforming Australian Index. The local benchmark for us is Commonwealth Bank (CBA). Our largest stock currently pays a ~4.6% fully franked dividend and if you purchase today, you will receive ~7% fully franked over the next 13 months, very attractive compared a term deposits around 2% unfranked. With a little acute market timing, these rates of return can be improved further. We purchased CBA under $81 a few weeks ago and its now trading pleasantly over $86. Hence, we are looking for returns better than CBA is offering for us to consider purchasing outside this simple and relatively safe space. (VIEW LINK)