Exchange traded fund investors wanting to invest in the China growth story, but worried about regulatory winds buffeting the country’s internet giants, may take succour from the latest CSI 300 rebalancing.
December’s rebalancing of the CSI 300, China’s key benchmark of onshore-listed companies, has garnered cautious approval from both Morgan Stanley and Goldman Sachs, even as it comes after all kinds of bad news for those investing in China.
The US has expanded the number of Chinese companies on its investment blacklist; there are continued concerns over China’s indebted property developers; and there are fears of further regulatory crackdowns kicked off by the November 2020 cancellation of Ant Group’s IPO.