- China is in the middle of a tightening regulatory cycle, implementing anti-monopoly, data security and industry-specific regulations.
- The recent regulatory changes were announced at a time when China was seeing a slowdown in its economy and resurgence in COVID-19 cases, which has further weighed on equity performance.
- Policy and regulatory scrutiny should be seen as ongoing risks when it comes to investing in China, to be carefully monitored and integrated in company research and portfolio management.
For further details see:
China's Regulatory Tightening: Our View On Goals And Scope