As traders grapple with the breakout of war in Europe, the prospect of a new regulatory crackdown in China is getting lost in the headlines, but potentially poses a larger risk to emerging-market assets.
A meltdown in Chinese technology shares after authorities told food-delivery platforms to cut their fees last month has fueled bigger losses for MSCI Inc.’s Emerging Markets Index than even Russia’s invasion of Ukraine. That’s because China accounts for about 30% of the gauge, while Russia is just over 1.5%. Traders are now concerned that this week’s meeting of the National People’s Congress could precede a renewed crackdown -- even as opening remarks from Premier Li Keqiang emphasized that venture capital still has a role to play.
