Ongoing headwinds — zero Covid-19 policy, problems in the real-estate market, and a crackdown on its global tech companies — have affected the Chinese economy. After years of irrational exuberance, its backbone – the property sector – broke as leading developers have defaulted on debt repayments. This has also led to a meltdown in equities. What does this mean for India?
Since its inception (in 1995) nearly thirty years ago, the MSCI China Index has delivered zero returns for investors against MSCI Emerging Market Index’s 160% gains. Regulatory clampdowns faced by Chinese businesses in recent years – both from within and the US – are partially responsible for the equity meltdown. The MSCI EM Index is down 40% from its February 2021 peak, and China is one of the major reasons. The country’s zero Covid-19 policy,
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