The opening months of MSCI’s new China indexes should serve as a warning. The CCP works in unpredictable ways, and sometimes in a manner that is deliberately economically damaging. For this reason, returns in China can never be taken for granted.
Trump famously accused China of manipulating its currency to gain an undue advantage when trading with its’ partners. We covered the story of problems between the U.S. and China in our story about Hong Kong in June last year.
Recently there was a scandal that we covered at #DisruptionBanking involving German digital payment giant Wirecard. € 1.9 billion went missing. The story may have led the Chinese government to understand that it needs to scrutinize Fintech companies more; and that fraud does happen in this sector.