Foreign investors have taken the Chinese government’s crackdown on local companies seriously. George Soros has been the first to realize that something was wrong.
The fund of the world's most successful financier, as well as other large investors, has rushed to sell off its assets in China. Businessmen fear substantial losses amid China’s crackdown on local tech companies. Notably, Soros has been one of the first to shrink his presence in the Chinese market. ARK Invest, a large investment fund, is no longer the holder of Chinese shares. Marshall Wace, one of the world’s largest hedge funds, followed suit. “You could argue that US-listed Chinese American Depositary Receipts are now uninvestable,” the company warned.
Gary Gensler, the Chair of the US Securities and Exchange Commission, addressed the issue of high-risk investments in Chinese firms. He asked the SEC to temporarily halt approvals of new Chinese IPOs. The sell-off continues despite MSCI China trading at the lowest level since 2005. At the same time, other investors are trying to keep a positive stance. Thus, the Asian division of Aberdeen Standard Investments acquired a stake in Tencent. The company also kept shares of most tech holdings in China during the recent sell-off.
