Transformation of the economy towards high quality services.
(Photo: Reuters)
Frankfurt Investors in China need good nerves. Since the government regulated the tech companies there to a considerable extent, their shares have been going down sharply. In addition, the problems in China’s real estate sector are causing investors great concern – which is partly due to the highly indebted real estate developer Evergrande. The US Federal Reserve recently saw itself compelled to warn that there could also be risks for the US financial system from there.
The bad news is having an impact: from the beginning of the year to the end of October, the MSCI China Index has lost around 14 percent of its value. It went even further down for individual technology stocks such as the papers of the online retailer Alibaba, which have since fallen by more than 20 percent. And other companies also fell into the downward spiral. In view of these losses, some experts now consider China stocks to be cheap and see entry opportunities.
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