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Sunday, May 12, 2024

Political fears hit China stocks

Plenty of reasons to buy, but big, long-term foreign investors are missing

A electronic board displays stock indexes in Shanghai in 2022.

Decades-long foreign bullishness on China’s capital markets is breaking down, investment flows and interviews with fund managers suggest, with a new era of uncertainty fuelled by geopolitical risks and US investors especially wary.

There have been ample excuses to buy China as the world’s second biggest economy gathers steam.

Post-pandemic recoveries in exports, property and shopping have run harder than expected. Stock market returns are solid. Jack Ma’s reappearance and plans to break up his Alibaba empire were also seen as ending a few years of regulatory…

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