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How China Bulls Lost US$ 1 tn in a Matter of Weeks


As FDI appears to be increasingly making a beeline for India over China, the FPI is just following the trend. Of course, India is still not a part of global bond indices and that could be a dampener, but equity fund managers are not overly worried about that. Now, global fund managers are not just talking about India with fanciful epithets, but are actually putting their money where there mouth is. The globally acclaimed Mark Mobius has allocated a higher weight to India than China since the beginning of 2022. Large funds like Jupiter Asset Management have confirmed that many of its emerging market funds already had India as their largest holding. Even the likes of M&G Investments has made a much bigger allocation to India this year.

chinese equity markets

The current review of Alibaba and Tencent indicates the clear reasons for their exit from the world’s top ten capital holding markets in 2021. The overlook hints at the struggle of the financial companies after facing strong pressure from Washington and Beijing. Following that first domino, reports of a government crackdown on China’s private education sector sent US-listed Chinese education stocks tumbling.

Investment Wednesday: 5 Best Tech Stocks to Buy on Nov 17

With little visibility on the government’s next move, many investors could experience a high level of risk. China can be best described as a communist country with a veneer of market economics which makes it a country with heavy regulatory risk. Second, qualitative factors such as regulatory changes, or stability factors such as mass riots, civil war and other potential events need to be factored in while making an investment. All signs point to the government’s determination to ensure social stability, even if it spells near-term turmoil for capital markets. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment.

The sharp decline came after the communist Chinese Government grew increasingly concerned about the growing clout of internet firms and the massive hoard of data they collect from hundreds of million people. By Geoffrey Smith — The U.S. and China trade barbs at their first face-to-face meeting of the year. The Bank of Japan starts to dial down its hyper-aggressive monetary… Almost overnight, a coffee brand called Luckin Coffee made waves across China’s first and second tier cities. Recent regulations in the Chinese tutoring industry led to some stocks falling more than 90%.

Chinese companies are at the forefront of several emerging industries. Their innovative abilities challenge established companies in developed economies like Japan, Europe, and the US. Currently, China spends an estimated 2.5% of its GDP on research and development activities in diverse industries ranging from artificial intelligence and robotics to healthcare and e-commerce. It has created an environment that favors the continuous growth of the Chinese economy.

  • Shares of Magic Empire Global soared as much as 5,799% in its IPO debut on Friday as another obscure Hong Kong-based company saw wild trading activity.
  • Second, qualitative factors such as regulatory changes, or stability factors such as mass riots, civil war and other potential events need to be factored in while making an investment.
  • Investors are also weighing the impact of a robust as well as expectations for a slowing of aggressive Federal Reserve rate hikes, which have hurt global markets this year.

While there is considerable uncertainty regarding the extent to which Chinese Equity markets will recover in 2022, the consensus is that the Chinese economy will grow by 5.5% in 2022. But you do need to consider the reasons driving these cheap valuations. These reasons include the political risk, possible property market implosion, and the risk of a further crackdown on Internet/Tech companies.

Singapore Exchange to boost derivatives, target Southeast Asia unicorns

Compared with a year-and-a-half ago, when its economy had just begun to reopen after a devastating surge of the delta variant, India’s stock market is unchanged in dollar terms. MSCI’s broadest index of Asia-Pacific shares outside Japan jumped 1.5% to leave behind a two-month low made in early trading hours, before the data release. The Shanghai stock exchange announced it had suspended the company’s initial public offering on its STAR Market, prompting Ant to also freeze the Hong Kong leg of the dual listing.

Among those listings are well-known and actively traded companies such as the Ping An Bank, Vanke, TCL Corporation, Weichai Power and the Suning Commerce Group. The SZSE owns and manages different types of indices, such as sector indices, thematic indices, composite indices, strategic indices and scale indices. The flagship index is the SZSE Component Index, representing the performance of the largest and most liquid stocks of mainland China-based companies. The number of constituents is fixed at 500 and the composition of this comprehensive benchmark index is reviewed biannually. The popular Citigroup analyst Alicia Yap believes that the substantial share buyback can be the right decision for Alibaba and Tencent. It can help reverse the poor mood of the investors, and hence, companies can expect a kick in their current market value.

msci china

Also, Euronext has more than 1300 companies listed with a total market capitalisation of $6.65 trillion. Alibaba Group Holdings Limited or Alibaba is a popular Chinese multinational technology company. It was founded on 28th June 1999 in Hangzhou in Zhejiang and is into retail, internet, technology, e-commerce, etc. It is counted as one of the world’s largest e-commerce and retailer companies. It has achieved many feats as it ranked as the world’s fifth-largest artificial intelligence company in 2020.

Bombay Stock Exchange (BSE), India

Earlier this year, the Chinese tech and education sectors were tied down with regulatory restrictions, whose impact reverberated across the globe. Companies such as Didi, Tencent, and Alibaba faced regulatory challenges due to reasons including data privacy concerns of users and prohibition of EdTech companies from raising money in overseas markets. To be sure, there are reasons to be skeptical about the rebound in Chinese tech shares. For one thing, there are lingering jitters that China’s zero-Covid approach could spur fresh lockdowns. And there’s the prospect of US-listed Chinese stocks being kicked off the New York exchanges, though Washington and Beijing are in talks to settle the dispute. The CSI 300 Index, which tracks domestic stocks, jumped 9.6% this month, coming close to a technical bull market, while Hong Kong’s Hang Seng Index climbed 2.1%.

It’s Happy Lunar New Year For This Chinese Stock, But It Faces A … – Investor’s Business Daily

It’s Happy Lunar New Year For This Chinese Stock, But It Faces A ….

Posted: Thu, 26 Jan 2023 08:00:00 GMT [source]

Get live Share Market updates and latest India News and business news on Financial Express. The Nasdaq Golden Dragon China Index closed up 16% in June following its 2.6% gain in May, marking its first two-month winning streak since February 2021. We are the one-stop-shop for facilitating your investment plans in India through the entire lifecycle, from pre-investment to after-care. The history of relations between India and China dates back to 2nd century BC and has translated into bilateral relations valued at over $85 billion in the 21st century. Today, the two Asian giants represent Asia’s two largest and most dynamic economies which are forming the face of the new world.

Adani Global

One such famous exit was Didi Global which is credited to making China’s largest ride-hailing platform. One of the key reasons for such an existence goes to the Chinese government’s tight policies. It has created strict policies for the Chinese companies that prefer to list overseas to ensure that sensitive data remain hidden from their foreign counterparts.

Comments from market watchers on the China unrest after Chinese stocks slumped as recent monetary easing measures failed to offset investor worries. Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. Since 1996, Equitymaster has been the source for honest and credible opinions on investing in India. With solid research and in-depth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day. Here’s why hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster. While investing isn’t exactly «riskless», investing in companies from different regions could lessen the blow of a downturn.

On reopening bullishness as it said that China’s Covid containment policy now appears to be being adjusted on a sustained basis, both in official statements and in actions taken on the ground. Global diversification is an important part of a well-rounded portfolio and Chinese stocks are cheap by historic standards. However, tactical bets such as the fall in Chinese tech stocks are high risk–high reward plays, which are not for the risk-averse.

Our mission is to deliver premium content and contextual is it time to buy stocks or is the market heading 4 on China’s technology scene to the worldwide tech community. In 2018, Tim Hortons’ parent company Restaurant Brands International and Cartesian Capital Group jointly established the Chinese business. In February 2019, Tim Hortons China opened its first cafe in Shanghai.

China Stocks Veteran Hao Hong Sees Hong Kong Surge to 2021 … – Bloomberg

China Stocks Veteran Hao Hong Sees Hong Kong Surge to 2021 ….

Posted: Fri, 27 Jan 2023 08:00:00 GMT [source]

And this is one of the key reasons why China continues to be a favored foreign investment destination. Chinese stocks in the US also suffered their biggest selloff since 2008 after US regulators identified five companies that could be subject to delisting for failing to comply with auditing requirements. There is a war for superiority between the US and China over the semiconductor sector. It must be noted that Chinese equities usually perform well after the conclusion of party congresses, but not so much this time.

A stock exchange is a marketplace where investors can buy and sell securities, including stocks, bonds, derivatives, commodities and other financial instruments. Also, it serves as a measure of the economy’s health and a key indicator of the world’s economic strength. This article explains about the top 10 largest stock exchanges in the world. London Stock Exchange is among the oldest stock exchanges in the world, which was set up in 1801.

China Stock Investors Snap Up $15 Billion of Hong Kong Tech Shares – Bloomberg

China Stock Investors Snap Up $15 Billion of Hong Kong Tech Shares.

Posted: Tue, 08 Nov 2022 08:00:00 GMT [source]

We do not own, manage or control any aspect of Google Translate and are not responsible for the translations provided by Google Translate. We do not make any promises, assurances, or guarantees as to the accuracy, reliability, or timeliness of the translations provided. We can only verify the validity and accuracy of the information provided in English. Viewers who rely on information through Google Translate on our website do so at their own risk. By using Google Translate, you understand and agree to this disclaimer.

In December last year, Alibaba announced a major reshuffle at the top, as the country tightened its stand against domestic Big Tech companies over data and internet regulations. Since last year, Chinese regulatory authorities have been cracking down harder on domestic tech giants to end their dominance in the internet sector. Chinese President Xi Jinping reportedly “intends to shift policies regarding its control over the country’s major tech companies such as Alibaba Group and Tencent Holdings”. There was a ray of hope in China’s tech sector as the borders were opening. A boost in the economy was also predicted however the appointments done in politburo were not supportive of these aspirations.

That is not too appealing to global companies as even the likes of Apple are now seriously diversifying beyond China and looking at India as a serious manufacturing option. These factors pulled together have led to a $5.1 trillion rout in Chinese stocks since the start of 2021. During this rather trying period, it is Indian economy that has shown resilience and the ability to bounce back from the depths of the pandemic. SPAC is the best listing method.” Tims Hortons China’s partner is Silver Crest and when it went public in January 2021 it successfully raised $345 million.


Aradhana Gotur is a Content Writer with 4 yea of experience in personal finance, stock markets, and lifestyle areas. Having recognised the power of words, she constantly works on using them to enhance financial awareness among the masses and meet business objectives. One of her greatest strengths is breaking complex concepts in an easy-to-understand way.

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