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Analysis: Valuing China assets no easy task after $1 trillion wipeout – Reuters

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  • Summary
  • China stocks go from EM leaders to laggards
  • Analysts bullish on China heading into tumult
  • MSCI China adjusted to 13.9 times P/E -MS
  • Online insurers latest in cross-hairs
  • Average 2021 returns -7% for China equity funds

LONDON, Aug 16 (Reuters) – Any veteran investor will tell you that financial markets overshoot when trouble hits, but what if that market is the world’s second-largest economy and the government has decided the rules of the game have changed?

China’s months-long regulatory crackdown has included big names in e-commerce, the gig economy, exam cramming and most recently online insurance. Close to $1 trillion in market value has been wiped off China Inc since February. read more

For big firms that also list on markets like Wall Street because it brings in international investment, 2021 is already the worst year since the global financial crisis.

It could spring back of course, but there’s the rub. Many analysts are convinced things will settle, but only the Beijing ruling elite know if and when that might be. Read More…