Should You Stop Investing in China? - Evergrande, VIEs and other Chinese RisksShould You Stop Investing in China? - Evergrande, VIEs and other Chinese Risks
Should You Stop Investing in China? - Evergrande, VIEs and other Chinese Risks
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
