Chinese policies lead to $2 trillion wiped from stock markets

Chinese policies lead to $2 trillion wiped from stock markets

Chinese companies listed in New York and Hong Kong markets have lost $2 trillion in value. Factors alarming foreign investors and causing widespread sale of Chinese assets include strict lockdown measures to combat COVID-19, a Chinese crackdown on tech groups and massive debts accrued by Chinese realty firms such as Evergrande. Referring to the prospect of investing in China, Neil Shearing of the research firm Capital Economics said, “Policy risk has increased markedly.” (Source: The Economist)