Schroders› Robin Parbrook: Is it game over for Chinese tech investing?
With intense regulatory scrutiny and restrictions on overseas listings, is it game over for investing in China tech and the Chinese market in general? Schroders› Robin Parbrook, investor in Asian equities, concludes that the investing landscape in China has changed profoundly, and he advises on how investors should view Chinese equities now.
Parbrook concludes there are four reasons why the Chinese government acted as it did: national security, financial stability, social stability and mobility, and the «dual circulation» policy.
There had been a trickle of concern about the rising risk of Chinese regulation of the technology sector ever since the Ant Group IPO was scuppered at the last minute in November last year.
But in July the trickle became a tsunami as the Chinese government clamped down on the education and technology sector in a big way, resulting in a significant market sell-off.
Schroders› investor in Asian equities, Robin Parbrook, cannot deny the landscape has changed significantly, as he lays out in his article. But first we need to understand the context of why the state wants to take greater control and oversight of the internet sector in China.
Read Robin Parbrook’s Perspective-article Is it game over for Chinese tech investing?