Keep a cool head when investing in Chinese equities

AFTER a sharp sell-off starting in February 2021 that spanned nearly 18 months, Chinese stock markets have staged a spectacular rebound. Investors are excited.

Signs that the Chinese government was easing up its regulatory crackdown on tech and providing support to the ailing economy and property sector offered fodder for the strong rally since last October.

The surprise government decision to reopen the economy last December was also a tailwind for Chinese equities, which are outperforming global peers by a big margin.