China’s new political risk premium
A series of policy upheavals is putting off some investors
FOR THE average investor, China is the source of all sorts of uncertainty. A regulatory crackdown on social-media and education firms has sent stocks tumbling. Companies with exposure to property are suffering as a result of a clampdown on leverage and a liquidity crisis at Evergrande, a developer. A ban on cryptocurrency transactions briefly knocked the price of bitcoin. And a rush by provincial authorities to meet carbon-emissions targets is causing power shortages, which could weigh on both the economy and asset prices.
This article appeared in the Finance & economics section of the print edition under the headline “The political premium”
Finance & economics October 2nd 2021
- How a housing downturn could wreck China’s growth model
- China’s new political risk premium
- The latest shock to China’s economy: power shortages
- Can lending controls solve the problem of unaffordable housing?
- Two Fed presidents resign after criticism of their investment activities
- Making sense of the chaos in commodity markets
- Just how Dickensian is China?
- Award: Henry Curr
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