China remains a no-go area for investors

With its efforts to support the domestic stock market, China’s government apparently wants to reassure Chinese small investors and maintain social peace in the country. This is understandable in the logic of the Communist Party. However, the Chinese leadership is sending a signal to foreign investors that fundamental data, economic expectations, i.e. everything that influences share prices on other markets, is lost in an emergency. When push comes to shove, Beijing takes the course (or at least tries to). Investors are then assets that are brought into shape with trading restrictions in order to support the government’s course.