Investors in Chinese equities “may feel like they are standing in front of a train wreck,” wrote John Woods, Credit Suisse’s chief investment officer for Asia, last week. “But it does not have to be like this.” “Last in the queue”īefore the crackdown, global investors saw Chinese tech as a way to tap into the country’s rising incomes, which first manifested as soaring demand for consumer products-from running shoes to rice cookers-and later as mass adoption of mobile payments channels and social media platforms. But that strategy assumed that Beijing would leave tech giants alone to thrive and rival the West, Gertken said. The past few months have disproved that theory, leaving investors without an obvious playbook. Some say that as a long-term bet, China is only for the brave. “The Chinese Communist Party is master of all it surveys, and if the ready conclusion from the past few weeks is that socialist ideology has become a much more significant market factor, how could equity investors value that?” said Diana Choyleva, chief economist at Enodo Economics.Ĭhina is entering a new phase of development, in which growth will give way to a redistribution of wealth and income, she said. “In such an environment, the owners of capital-especially if they are foreign-will be last in the queue to claim their rewards.” Some major investors say that until the dust settles, it’s too soon to be betting on Chinese tech. #DIDI KEEP XIMALAYA LINKDOC IPOTIMES DRIVERS#.
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