China Stocks’ Lost Decade Means an Uphill Battle to Regain Trust
- MSCI China Index has lost about 17% since end of 2013
- Investor skepticism abounds as authorities mull stimulus
A morning commuter in the central business district in Beijing.
Source: Bloomberg
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A tumultuous week for Chinese stocks underscores Beijing’s challenge in reviving a market that’s already suffered a lost decade of equity returns.
The MSCI China Index has fallen about 17% since the end of 2013, a period that saw equity gauges in the US and India at least double. It’s a disturbing track record for investors who bought into China’s economic growth story, only to be hammered by sudden flare-ups of geopolitical tensions, unpredictable regulatory clampdowns and the state’s growing control over private enterprises.