Investing

What You Need to Know About Investing in China’s Volatile Stock Market

Beijing’s efforts to boost the world’s second-largest economy sent stocks soaring, but the rally mightn’t be sustainable. 

Stock figures reflected on a glass window in Beijing.

Photographer: Gilles Sabrie/Bloomberg

China’s stock market rally has attracted investors around the world, but recent turbulence has raised questions over whether now is the right time to invest.

After policymakers in Beijing unveiled an array of economic and financial support last month, Chinese equities skyrocketed to outperform all other global indices, triggering a wave of cash from those who feared missing out. Then on Wednesday, the stocks suffered their biggest drop in more than four years as traders grew impatient over the pace of the stimulus measures.