China's market crash could be the last straw for many foreign investors who leave permanently, think tank says (2024)

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e=r.searchBoxForm.querySelector("[name=fr]"),n=r.searchBoxForm.querySelector("[name=fr2]");e&&r.config.searchBox&&r.config.searchBox.params&&r.config.searchBox.params.fr&&(e.value=i.searchBox.params.fr,e.disabled=!1),n&&r.config.searchBox&&r.config.searchBox.params&&r.config.searchBox.params.fr2&&(n.value=i.searchBox.params.fr2,n.disabled=!1),r.searchBoxForm.submit()}}),1e3)},r.recognition.onspeechstart=function(){},r.recognition.onspeechend=function(){r.recognition.stop()},r.recognition.onerror=function(){r.speechText&&(r.speechText.innerText=r.i18n.t("search.voice.recognition_error")),r.hideTrending(r),r.showRetryLink(r),r.errorAudio.play()},r.recognition.onaudiostart=function(){r.speechButtonContainer&&r.speechButtonContainer.classList.add("listening")},r.recognition.onaudioend=function(){r.speechButtonContainer&&r.speechButtonContainer.classList.remove("listening")},r.recognition.onsoundstart=function(){r.hideTrending(r),r.noSpeech=!1,r.speechButtonContainer&&(r.speechButtonContainer.classList.remove("listening"),r.speechButtonContainer.classList.add("speaking"))},r.recognition.onsoundend=function(){r.speechButtonContainer&&r.speechButtonContainer.classList.remove("speaking")},r.recognition.onstart=function(){r.recognitionInit(r),r.startRecognition(r)},r.recognition.onend=function(){r.isRecognitionStart=!1,0==r.noSpeech&&""==r.speechResult&&(r.speechText&&(r.speechText.innerText=r.i18n.t("search.voice.recognition_nomatch")),r.hideTrending(r),r.showRetryLink(r),r.errorAudio.play())},document&&document.dispatchEvent&&document.dispatchEvent(new Event("VOICE_JS_READY"))}}o.I18n=m,o.prototype.renderPermissionGuide=function(e){var n='\n

    \n

    \n

    \n

    \n

    \n

    \n

    \n

    '.concat(e.i18n.t("search.voice.permission_title"),'

    \n

    ').concat(e.i18n.t("search.voice.permission_text"),"

    \n

    \n

    \n

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    \n

    \n

    \n

    \n

    \n

    \n \n \n \n \n \n \n

    \n

    \n

    \n \n \n '.concat(e.i18n.t("search.voice.recognition_retry"),'\n

    \n

    \n

    \n

    \n

    \n

    \n ').concat(e.i18n.t("search.voice.trending_title"),'\n \n

    \n

    \n

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e)&&("SpeechGrammarList"in e||"webkitSpeechGrammarList"in e)}}],d=0;d0){var n=e.speechResult.charAt(e.speechResult.length-1);"."!==n&&"?"!==n&&"。"!==n&&"?"!==n||(e.speechResult=e.speechResult.slice(0,-1))}},o.prototype.sendBeacon=function(n,t){var o=e.YAHOO.ULT||{},i=e.YAHOO.SB||{};if(o.beacon_click){var r={_S:i.config.i13n.spaceid,_I:i.config.i13n.pvid,actn:n,sec:"search",slk:t};e.YAHOO.ULT.beacon_click(r)}},o.prototype.ajaxReq=function(t,o){var i,r,a=XMLHttpRequest.DONE||4,s=new XMLHttpRequest;if(n.documentMode&&n.documentMode<10)return(new e.XDomainRequest).onload=function(){try{r=JSON.parse(i),o(r)}catch(e){return}},s.open("GET",t),void s.send();s.onreadystatechange=function(){if(s.readyState===a)if(200===s.status){i=s.responseText;try{r=JSON.parse(i),o(r)}catch(e){return}}else o(r)},s.open("GET",t,!0),s.timeout=1e4,s.send()},e.YAHOO||(e.YAHOO={}),e.YAHOO.Util||(e.YAHOO.Util={}),e.YAHOO.Util.VoiceSearch=o}(window,document)}();var Wn={containerClass:Un.tooltip,textClass:Un.tooltip__text,showClass:Un["tooltip--show"]},Jn=["zh-hant-tw","zh-hant-hk"];ye("ybar-mod-searchbox",(function(e){var n={ybar:document.getElementById("ybar"),searchInput:document.getElementById("ybar-sbq"),buttonBar:document.querySelector(".".concat(Un["sa-btn-bar"])),voiceSearchBtn:document.getElementById("ybar-sbq-voice"),searchForm:document.getElementById("ybar-sf"),searchBoxIcon:document.querySelector(".".concat(Un["searchbox-icon-uh3"])),searchBoxPlaceholder:document.getElementById("ybar-smartphone-searchbox-placeholder"),searchBoxBackButton:document.getElementById("ybar-search-back-btn"),shopsButtonsWrap:document.querySelector(".".concat(Un["shops-buttons"])),categorySelect:document.getElementById("shops-category-select"),selectedMerchantInput:document.getElementById("selected-merchant-input"),selectedMerchantClearButton:document.querySelector(".".concat(Un["selected-merchant-clear-button"])),submitSearchBtn:document.getElementById("ybar-search"),clearSearchBtn:document.getElementById("ybar-sbq-x")};!function(e,n){var t,o,i,r=e.getConfig();if(n.ybar&&"desktop"===r.device&&(null===(t=r.bucketConfig)||void 0===t?void 0:t.highlight_searchassist)&&(null===(o=r.bucketConfig)||void 0===o?void 0:o.overlay_class)){n.ybar.setAttribute("data-ovrly-bkt",r.bucketConfig.overlay_class),null===(i=n.searchForm)||void 0===i||i.classList.add(Un[r.bucketConfig.overlay_class]);var a=document.createElement("div");a.classList.add(Un.overlay,Un[r.bucketConfig.overlay_class]),document.body.appendChild(a),e.onDestroy((function(){document.body.removeChild(a)})),e.addElementListener(n.searchForm,"focusout",(function(e){if(n.searchForm&&n.searchInput){var t=e.relatedTarget;t&&!n.searchForm.contains(t)&&window.YAHOO.SA&&window.YAHOO.SA.apps&&window.YAHOO.SA.apps[0]&&window.YAHOO.SA.apps[0].view.shown&&window.YAHOO.SA.apps[0].view.hide()}}))}}(e,n),zn(e,n),n.voiceSearchBtn&&function(e,n){var t=e.getConfig(),o=t.locale,i=function(){var e,t;(null===(t=null===(e=window.YAHOO)||void 0===e?void 0:e.Util)||void 0===t?void 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    China's market crash could be the last straw for many foreign investors who leave permanently, think tank says (2024)

    FAQs

    China's market crash could be the last straw for many foreign investors who leave permanently, think tank says? ›

    China's market crash could be the last straw for many foreign investors who leave permanently, think tank says. China's crashing stock market could be the breaking point for foreign investors, Atlantic Council's Jeremy Mark said. The market will become more volatile as remaining investors focus on fast profits.

    Why are foreign investors leaving China? ›

    The slowdown in the economy and rising geopolitical tensions has led some companies to reduce their exposure, and the rapid shift to electric vehicles in China also caught foreign car firms off guard, prompting some to withdraw or scale back their investments.

    Why is China's market crashing? ›

    Chinese stock indexes touched multi-year lows in February. The selloff was a culmination of months of frustration over the sputtering economy and a lack of forceful policy stimulus measures.

    What are investors saying about China's market meltdown? ›

    Investors are Bearish on the Chinese Market

    Source: Bloomberg Finance LLP. Every index tracking China share prices had a terrible 2023, with the declines continuing through last month. That includes indexes in China's markets, Hong Kong, and those tracking Chinese companies on Wall Street.

    Is it good to invest in China now? ›

    It remains the world's second-largest economy; it clocked a better-than-expected GDP growth in the first quarter of 2024; its company earnings, especially in the industrials, utilities and IT, are expected to rebound, according to Goldman Sachs; and its global share of manufacturing may be higher (at 38 per cent) than ...

    Who is the largest foreign investor in China? ›

    Hong Kong

    Why are people not investing in China? ›

    Some of the risks associated with investing in China include its communist structure, regulatory differences, and insider trading.

    Why is China facing a crisis? ›

    Property crisis

    Many of the risks facing China's economy stem from its ailing real estate sector. For decades, China's economy was dependent on a booming property market driven by speculative investment returns. However, this growth was largely driven by debt.

    Can Chinese citizens invest in US stocks? ›

    There's no citizenship requirement for owning stocks of American companies. While U.S. investment securities are regulated by U.S. law, there are no provisions forbidding individuals who are not citizens of the U.S. from participating in the U.S. stock market.

    Why was the market crashing? ›

    Generally speaking, crashes usually occur under the following conditions: a prolonged period of rising stock prices (a bull market) and excessive economic optimism, a market where price–earnings ratios exceed long-term averages, and extensive use of margin debt and leverage by market participants.

    What happens to investors when market crashes? ›

    Sometimes, however, the economy turns or an asset bubble pops—in which case, markets crash. Investors who experience a crash can lose money if they sell their positions, instead of waiting it out for a rise. Those who have purchased stock on margin may be forced to liquidate at a loss due to margin calls.

    Why are Chinese stocks not doing well? ›

    Domestic policy trends and geopolitical risks may continue to pressure the multiples of Chinese equities structurally.” Earnings per share for the MSCI China Index fell 4.5% from the year earlier in the second quarter, its worst in five quarters, according to data from Bloomberg Intelligence.

    Will China stock market ever recover? ›

    One-year forward multiples for the CSI300 and MSCI China indices stand at 11.6x and 9.6x, well below their historical averages. Earnings are on path to recovery for the CSI300 (Goldman Sachs' top-down estimate being 9% / 11%) and MSCI China Index (8% / 10%) for 2024 and 2025 respectively, in local currency terms.

    Why investors are leaving China? ›

    Their backgrounds vary widely, and they're leaving for all sorts of reasons. Some are very poor, others are very rich. Some leave for economic reasons, as opportunities dry up with the end of China's boom. Some flee for personal reasons, as even limited freedoms are eroded.

    Will China outperform us? ›

    Some analysts even argue that China's economy may never surpass that of the United States. When considering further the vast soft power and geopolitical advantages the United States holds over China, it appears unlikely that China will displace the United States as a leading global power in the foreseeable future.

    Should I stay invested in China? ›

    Ongoing headwinds may keep volatility elevated, but we believe an allocation to Chinese equities is still worthy of consideration for several reasons. Our latest Capital Market Assumptions suggest that Chinese equities appear to offer attractive return prospects compared to other major regions over the long-term.

    Why are US companies pulling out of China? ›

    Intellectual Property Concerns

    U.S. companies have long expressed concerns about the protection of their intellectual property (IP) rights in China. Instances of IP theft, forced technology transfers, and other practices have made businesses wary of sharing their proprietary knowledge with Chinese partners.

    Why are people moving away from China? ›

    This trend is being driven by a number of factors, including rising labor costs in China, the ongoing trade war between the United States and China, and concerns about China's political and economic stability.

    Why foreign investors are feeling jittery about China? ›

    The risk premium that investors deem acceptable to hold Chinese assets is rising, leading some to lower their allocations. The longer the war in Ukraine drags on, the higher the premium could go. Moreover, China's weakening control over the Omicron variant of covid-19 darkens the economic outlook.

    Why are Japanese companies moving out from China? ›

    Some companies appear ready to side with America. A few are shifting manufacturing out of China, often to South-East Asia, in an effort to diversify their supply chains and placate customers worried about geopolitical risks. In September Mitsubishi Motors announced that it would stop making cars in China.

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