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China Markets in Turmoil as Russia Ties Add to List of Risks

  • Global funds are rapidly reducing exposure to Chinese assets
  • Country’s stocks among world’s worst since Russia’s invasion
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WATCH: Primavera Capital Group Founder Fred Hu discusses the China tech selloff.Source: Bloomberg
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Global investors are losing faith in China’s ability to navigate an increasingly complex maze of challenges.

The war in Ukraine raises the specter of harsh sanctions being applied to Chinese firms should they proceed with plans to acquire stakes in Russian energy and materials producers. The risk of Chinese companies being delisted from the U.S. is growing. A housing slump is worsening. Record commodities prices locally may stoke inflation, while the highest Covid-19 infections since the Wuhan outbreak will weigh on already weak consumption.