In the summer of 2017, MSCI finally agreed to include China mainland stocks in its global benchmark equities indices. The decision means Chinese stocks will become a must-have part of many investor’s portfolios. Indeed, it’s a big opportunity for foreign investors, but the risk management is tricky in many regards. For one thing, speculative mom-pop retail investors have been dominating the Chinese stock market and for another, the state-owned firms have intervened in the trading market to a worrying degree. How will the market change and what can investors expect from this volatile yet promising market?
Since early 2015, 47 Chinese companies have received combined offers of $43 billion in funding from private equity houses and Chinese internet giants to delist from American exchanges and make a run for the domestic stock markets. So far 14 of them have delisted and none of them have managed to complete the journey and re-emerge on a Chinese exchange. The sudden desire to rush for the exit represents a swift reversal of a quarter-of a-century flow of Chinese companies to the West. It is the result of two factors: poor performance of many Chinese companies on western exchanges, and the much higher valuations that companies can command in China.
China’s stock market crash left a host of casualties in its wake—from a weakened renminbi to plummeting commodity prices.
Why the government’s efforts to stabilize China’s flailing stock markets have not worked so far.
Four stories behind the dramatic rise and the equally dramatic fall of the Shanghai Stock Exchange’s stock index.
A clutch of Chinese companies are preferring to delist from foreign stock exchanges due to the boom in the Shanghai and Shenzhen stock exchanges.
China’s stock market regulator is finally cracking down on umbrella trusts in a bid to defuse a potentially dangerous situation.
This week, new data on the Chinese economy painted a bleak picture; the Shanghai Composite Index surged (again); and a Chinese company bought Segway.
This week, mainland investors pushed the Hang Seng Index to a seven-year high; Alibaba’s Ant Financial launched a Big Data-based stock index; and Cloud Live Technology teetered close to a default.
Is the Shanghai Stock Exchange finally becoming a hub for global finance?