Michael Lai, investment director at GAM, suggests ways the Chinese authorities can rectify some of their recent policy mistakes.
The sell-off in Chinese equities, which started in about mid-June and sharply accelerated in early July, has alarmed investors worldwide. While much has already been said and written about the turmoil, it is worthwhile taking a perspective from on the ground in Hong Kong. Managers warn on repercussions of China bubble unwinding Following the massive bounce in April stock prices, the euphoria among local Chinese investors reversed as a result of the state council's decision to remove the regulatory banks' loan-to-deposit ratio (LDR), which stood at 75%. This decision, while ben...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
