{"id":485,"date":"2012-04-10T07:17:38","date_gmt":"2012-04-10T07:17:38","guid":{"rendered":"http:\/\/www.thebizsense.com\/views\/?p=485"},"modified":"2012-04-10T07:23:09","modified_gmt":"2012-04-10T07:23:09","slug":"neglected-china-shares","status":"publish","type":"post","link":"https:\/\/www.thebizsense.com\/views\/investments\/neglected-china-shares","title":{"rendered":"Why the shares are neglected"},"content":{"rendered":"
\"Why<\/a>

Why Chinese Shares are Neglected<\/p><\/div>\n


\n<\/strong><\/p>\n

International investors generally have very low holdings of Chinese stocks.<\/p>\n

One reason is that the huge domestic market is largely closed to foreign investors, and completely closed to individual investors. The only avenues open to us are shares of Chinese companies listed outside the country (mainly in Hong Kong), depositary receipts of such firms listed overseas, or foreign multinationals whose profits are geared to business with China.<\/p>\n

Another reason for low holdings is negative views towards China.<\/p>\n

Some of those are based on prejudice, for example condemnation of the influence of the state over banks and other companies through holdings in their shares. This became clearly farcical when Western governments reversed their own long-declared policies to save their private-sector banks with huge injections of public capital.<\/p>\n

Other negative views are soundly based, but their risks to economic growth, and particularly to the earnings of individual groups, are greatly exaggerated:<\/p>\n