CHINA’S stock market rally has attracted investors around the world, but recent turbulence has raised questions over whether now is the right time to invest.
After policymakers in Beijing unveiled an array of economic and financial support last month, Chinese equities skyrocketed to outperform all other global indices, triggering a wave of cash from those who feared missing out. Then on Wednesday (Oct 9), the stocks suffered their biggest drop in more than four years as traders grew impatient over the pace of the stimulus measures.
It is all fueling massive confusion over whether China – which has underperformed its global peers for years – is poised for a true comeback, with the Hang Seng Index of Chinese stocks listed in Hong Kong up roughly 25 per cent year-to-date.