Arrests in Hong Kong + Stock market outlook 2022
Almost every year, the Chinese government uses the Christmas calm in the West for all-out attacks on dissidents in its own country. Human rights experts cynically refer to this as the 'Jingle Bells' tactic. What has long been routine on the Chinese mainland has now also spread over to Hong Kong shortly before the turn of the year. With the shutdown of the online portal Stand News during the Holidays, authorities silenced one of the city's last critical voices. And the work of Western journalists is increasingly slandered, writes Marcel Grzanna in his sobering situation report.
Meanwhile, investors who put their money into Chinese stocks require nerves of steel. In 2021, Beijing put entire industries in a headlock with new regulations on an almost weekly basis. The tech sector in particular had to bleed. Giants like Alibaba lost nearly 50 percent of their value. Despite the uncertainty caused by this downslide, analysts remain optimistic for this year. "History teaches us that these are usually the periods that offer the most attractive opportunities," our Beijing team quotes one expert as saying in their stock market outlook. Especially the sector of renewable energies is worth keeping an eye on.
Another thing that will also please investors is the negative list for foreign investment that came into force on January 1. Despite its somewhat unpleasant name, the document reveals that China continues to tear down market entry barriers in more and more sectors. However, despite deregulating measures, entering the Chinese market is still anything but a cakewalk.