China’s campaign to tighten regulation across swathes of the nation’s industries is showing signs of abating, creating some relief among global investors. But there remains a number of unresolved issues that could yet have a wide-ranging impact on industries and financial markets alike.
The severity of the penalty for Didi Global Inc.’s controversial US initial public offering, the result of a corruption probe into China’s massive financial industry, and details of a planned expansion of property tax trials are just some of the potential concerns for investors.
China’s scrutiny over everything from technology to online tutors and real estate spurred a selloff that at one stage wiped more than US$1 trillion from the value of the nation’s stocks globally. The MSCI China Index is down 15% this year, trailing global shares by the most since 1998. President Xi Jinping is seeking to remodel the economy, address inequality and reduce financial risk without destabilizing growth.