Accepting common prosperity: the latest in Chinese equity markets

ALMOST a year has passed since Ant Financial felt the wrath of China's regulatory hammer. What began as a seemingly isolated incident at that time has since morphed into a full-blown regulatory crackdown (still ongoing) by the Chinese government. This unfortunate twist of events has led to China being the worst performing major market in 2021 - a stark contrast to the optimism earlier this year. With regulatory risks notoriously hard to forecast and predict, what's next for Chinese equities?

Despite stellar growth, China has fallen behind its peers

The Chinese authorities' goals have long been clear: to transition the Chinese economy into a consumption-driven one instead of relying on exports and investments - all done without sacrificing economic growth.