Why investors might be returning to Chinese equities

Following a dismal 2021 performance, Chinese equities have rallied so far this year, as investors begin moving into sectors that were previously untouchable due to an uncertain regulatory outlook.

Major Chinese indices underperformed in comparison with their emerging market and global peers in 2021, as Beijing’s tightening regulatory oversight and geopolitical concerns with the US lingered across new economy and technology sectors, hampering the share price of major index constituents.

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