Chinese markets to remain shaky as investors study Xi’s leadership reshuffle

CHINESE markets could remain volatile in the coming weeks as investors – particularly those outside of Asia – continue to parse what Beijing’s new leadership has in mind for China’s economy.

Investors started picking up Chinese stocks on Tuesday (Oct 25) after a global sell-off a day earlier. In Hong Kong, where several mainland Chinese companies are listed, the Hang Seng China Enterprises Index was up 1.29 per cent at Tuesday’s close, while the Hang Seng Tech Index closed 2.96 per cent higher. The Hang Seng Index and the mainland China-based CSI 300 Index were level from Monday’s rout. 

Some long-only investors in the region have been buying Chinese stocks including technology names, said Andy Maynard, the global head of equities at investment firm China Renaissance. Yet, market swings are likely to continue as investors from elsewhere try to familiarise themselves with the new Chinese leadership’s thinking.