Economics
China Tycoon Questions Hit Markets Even as Growth Fears Fade
- Latest crackdown throws spotlight on regulatory risk in China
- Stable economy has given policy makers opportunity to strike
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China’s economy may be defying the bears, but the nation’s regulators keep tripping up the bulls.
Despite a backdrop of robust economic growth, stable employment and rising factory prices, Chinese stocks and bonds are lagging behind almost all their global peers this year as investors grapple with a series of regulatory surprises. The latest bombshell came Thursday, when shares slumped on news that the government had stepped up scrutiny of the nation’s most active overseas acquirers -- including companies run by billionaires Wang Jianlin and Guo Guangchang.