Wang Jin felt sure that he could invest in Sichuan Trust, an institution that was part of one of what he describes as the “four pillars” of China’s financial system: banks, securities, insurance and trusts. Promised a return on his investment of 8.3%, he handed over 1.6m yuan (£178,000) in 2019. “The trust had a state licence, so we believed in its integrity,” Wang (not his real name) recalls. Unluckily for him, in May 2020, the company said that it would be unable to repay 20bn yuan of investments. Protests…
Tag: Investing
UK will not return to close relationship with China of Cameron era, Sunak says
Rishi Sunak has said the UK will not have a return to the close relationship with China pursued under David Cameron, as the prime minister met business leaders in an effort to drum up foreign investment. The government on Monday said £29.5bn of new investment had been earmarked for the UK, including projects by the ScottishPower owner, Iberdrola, and BioNTech, the German company which partnered with Pfizer on its Covid vaccine. Sunak met the heads of multinational firms including Goldman Sachs, Blackstone and JP Morgan at the summit in Hampton…
Shorting Chinese stocks is the third most crowded trade in wake of Beijing’s crackdown, fund managers tell BofA
Beijing has cracked down on tech companies such as Didi. VCG/Getty Images Fund managers said shorting Chinese stocks became the third most crowded trade in August, according to Bank of America. Beijing has tightened its grip on tech and education companies, causing investors to shift their positions. China policy is now considered a leading tail risk by fund managers, BofA’s August survey showed. Sign up here for our daily newsletter, 10 Things Before the Opening Bell. Fund managers said they think investors are ramping up their bets against Chinese stocks…