A Long Run of Underperformance for Shanghai

Considering the fact that the Chinese are pretty much assumed to be the new global hegemon, the Shanghai equity market has performed pretty poorly for a surprisingly long period of time.  Below is the performance vs. the S&P as expressed by ratio (when the chart is going up the index is out performing, when it's going down it's underperforming).  Since the middle of 2009, Chinese stocks haven't gone much of anywhere.  The average P/E ratio is 14.85x.