Recent events in China's mainland equity markets have been nothing short of spectacular.
From their 12 June 2015 peaks until last week’s trough on Wednesday 8 July (a couple of days less than a month) the Shanghai Industrial index and Shenzhen Composite index had fallen 32% and 40% respectively. A sell-off as sharp as this has unsurprisingly generated a huge number of column inches. This in turn may be contributing to some understandable uncertainty on the part of investors who are trying to gauge why the market has fallen and whether they should be changing their exposure to China. When addressing these concerns, we think it is important that investors look beyond the he...
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