EP10: What is Going on in China with Andy Rothman of Matthews Asia

Deconstructing Alpha

Regulation is a four-letter word in American politics, but in China, is it business as usual?

This year, Xi Jinping – the leader of the Chinese Communist Party – passed down a laundry list of regulations that resulted in cascading unintended consequences for businesses and investors alike. These new regulations address real estate construction leverage, private education, environmental concerns, data privacy, and even screen time for minors. Needless to say, investors are not so happy about all of this, nor is the mainstream media.

But, what is the real story?

Is this a step backward towards Maoist communism, or is this par for the course for “common prosperity?” More importantly, for investors, the performance of Chinese equities has languished as of late. And, as China goes, emerging markets typically follow. The big question now: Is this a contrarian opportunity, or is this a value trap?

Tune in to find out.

Sit back in your Lazy Boy, lay down on your office couch, or walk your dog (or cat if you are into that), and enjoy the show.