Investors split over riding Chinese dragon after stock market crackdown


On September 3, Xi announced plans for a new stock exchange in Beijing to serve “innovation-oriented” small and medium-sized companies as part of the campaign to boost onshore capital markets. It could indicate the safer sectors for investors to focus on. Details are scarce but analysts say the announcement emphasises a tough truth: it needs at least some foreign capital to build its businesses.

Whether the new bourse will help plug that hole remains unanswered. Well-established exchanges in Shenzhen and Shanghai means Beijing risks further dividing a limited domestic capital pool. It also poses a risk to Hong Kong, long the gateway for foreign investors seeking opportunities in China. “It has to be totally different, unique,” says ING’s Pang.

Whatever happens, BlackRock plans to continue to be involved in China and its assets – heavily. Its mutual fund recently launched its first fund in the country, raising more than $1bn from 110,000…

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