Читать книгу The Emerging Markets Handbook - Pran Tiku - Страница 122

Data: Bloomberg

China’s capital markets, especially its public markets, remain plagued by insider trading. The government has cracked down on this practice and has promised to reduce government involvement in approving IPOs, but its promises have yet to be backed up by action. The Chinese securities watchdog has moved to liberalise the stock market by removing the limits on investment by foreign investors.

The public markets indices are dominated by state-owned enterprises, which in turn mostly consist of energy and financial services companies. Consumer staples and consumer discretionary only consist of 3.5% of the Chinese H-shares index, giving investors little exposure to the China consumption story.

Exhibit 12 gives a breakdown of the H-shares Index. As seen in the chart, energy and financials which are typically state owned dominate. This share can be expected to decline, particularly in the financials sector, as the government moves towards liberalisation.