Manage episode 302353394 series 2137790
A regulatory crackdown and ideological campaign by the Chinese government has upended the Chinese stock market, which comprises close to 40% of emerging market indices. We evaluate what is going on and what investors should do.
Topics covered include:
- How has the Chinese stock market performed in 2021
- Why has Cathie Wood and Ark Invest dramatically cut their Chinese stock exposure
- What are examples of regulatory changes in China
- Why the stocks of Chinese online tutoring companies that trade on the New York Stock Exchange fell 90% this year
- What are variable interest entities (VIEs) and why they are a risky corporate structure for Chinese companies
- How a high private sector debt burden could lead to a banking crisis or contagion in China
- What are ways investors can invest in emerging markets while having a smaller allocation to China
For more information on this episode click here.