China’s corporate capitalism faces a bleak future

In Might 2022, Chinese language Vice Premier Liu He indicated the federal government’s intention to finish its “regulatory rectification” marketing campaign, a collection of laws imposed on the training, ride-sharing and expertise sectors.

He’s the highest financial adviser to Chinese language President Xi Jinping, so his message will need to have been authorised by Xi, who appears lastly to have realized the injury the year-long crackdown has carried out to investor confidence.

The Heng Seng index fell by 23.7% between December 2020 and mid-Might 2022, a consequence that’s partly defined by the regulatory crackdown. Whereas the worst appears to be over, the deeper issues brought on by the marketing campaign stay unresolved.

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