Re-assessing China Risks (Part Two)

Zero covid risk is gone, but what about the rest?

I am Qi Wang, CEO of MegaTrust Investment (HK), a boutique China fund manager based in Shanghai and Hong Kong. Total 25 years of experience in Chinese and global equities. This is my blog for MegaTrust clients and professional investors.

Part two of my reality checks on China investment risks in 2023. Apart from the end of “zero covid”, the regulatory environment is perhaps the only thing that’s improving. Also, it’s too early to call a sustained recovery in Chinese real estate, despite strong property sales in February.

Regulatory Risk Easing

The regulatory risk of Chinese companies has been easing for sure, versus a time when they faced a double whammy from both the U.S. and Chinese regulators. Signs that things are improving: