It’s kind of a crucial question for investors: how do you feel about China? In the economy of the 21st century, nobody can ignore the People’s Republic as a production location and as a sales market – but is the second largest economy in the world also a good place for investments?
Recent developments definitely make us skeptical. Because the capital markets of the budding superpower have developed anything but great. Share prices on the mainland Shanghai and Shenzhen stock exchanges have fared poorly in recent years. While the German stock index is currently at its highest level in history, listings on China’s stock exchanges have fallen back to levels where they were in 2019 and before that in 2007.
A major contradiction – with far-reaching implications for savers around the world.