Schroders: Chinese market volatility requires 'patience'

MSCI China down 30%

Elliot Gulliver-Needham
clock • 3 min read
In recent weeks, China has seen the country's highest Covid case numbers since the pandemic began
Image:

In recent weeks, China has seen the country's highest Covid case numbers since the pandemic began

The Hang Seng index dropped to a six year low this week, while the MSCI China index fell almost 30% year-to-date on Tuesday.

While markets may have fallen significantly in the last month, they have now somewhat rebounded, with the Hang Seng up 6% in the last week (though still down 8% YTD). MSCI China also is still down 20% YTD. According to analysts at Schroders, initial market weakness for China came following an announcement from the US Securities and Exchange Commission that five Chinese companies were at risk of being delisted in the US if they fail to comply with US auditing rules by 2024. It also noted that as many as 270 others could face delisting in the future as they report financial results. Sec...

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