The identity crisis facing Chinese equities

Chinese indices have delivered mixed results this year, with mainland bourses outperforming their offshore counterparts. As Beijing’s regulatory oversight tightens, there is little reason to believe that this trend will change.

For private companies operating out of emerging economies, there are numerous reasons to head overseas and raise foreign capital. Often, local capital market infrastructure lacks both the financial capacity and resource compared to traditional international hubs like New York or London. In addition to enabling access to deeper investor pools, global investment centres are often populated with seasoned banking analysts and industry experts, working to maximise business trade and exposure to potential investors.

But as capital markets and politics intertwine, some public equity pathways are becoming less considered as assets, and more, liabilities. The ongoing political diatribe between Washington and Beijing continues to spill over into the financial industry, lowering...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 1 article from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at [email protected], or +(852) 2122 5222