Chinese stocks suffered their worst week in a month as Beijing¡¯s move to tighten the screws on Macao casinos and fears of a potential collapse of China Evergrande Group underscored the risks of investing in the nation¡¯s equities market.
A soft rebound on Friday was small consolation for investors, with Hong Kong¡¯s Hang Seng Index and the mainland¡¯s CSI 300 gauge still ending the week down more than 3% each. The HSI is trading near the lowest level in almost a year and few more down days could put the CSI in the same position.
¡°Risks are skewed to the downside amid the double whammy of macro weakness and regulatory uncertainty,¡± Morgan Stanley strategists including Laura Wang said in a research report. The Wall Street bank cut its targets for the HSI and Hang Seng China Enterprises Index by 4% while noting the difficulty in quantifying the impact of Beijing¡¯s crackdown.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.