Is China Done With Its Market Crackdown? Ask Fosun
Investors reading the tea leaves in Beijing are still plenty skittish.
Fosun’s holdings include the UK’s Wolverhampton Wanderers football team.
Photographer: Nick Potts - PA Images/PA ImagesGlobal investors are wondering these days if Beijing has decided to ease a yearlong regulatory crackdown that has cost them more than $1 trillion in losses. After all, China accounts for about one-third of the emerging markets benchmark index. It’s simply too big to be ignored.
With no clear statement of policy on offer, asset managers have resorted to reading tea leaves. For instance, a deal that would allow the US securities watchdog to review the audit documents of New York-listed Chinese companies in Hong Kong could be a sign that China is again eager to attract foreign investments. Beijing can also try to appease capital markets by reviving the listings of Didi Global Inc. and Alibaba Group Holding Ltd.’s fintech affiliate, Ant Group Co.