Dramatic Moves in Chinese Equities Having Minimal Impact on the Average Investor
China typically accounts for about a 1% allocation in a 60/40 stock/bond portfolio.
After a tremendous yearlong rally during which onshore China A-share markets skyrocketed some 150%, these stocks have hit an air pocket, sliding around 30% during the last few weeks.
The Chinese government has taken unprecedented and aggressive steps to stem the slide, including buying blue chips outright, loosening margin trading requirements, banning large shareholders and company executives from selling their shares for six months, and allowing around 1,500 companies to suspend trading of their shares.
Patricia Oey does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.
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