The regulatory clampdown continues in the recent weeks with investigation into Didi Global. And just last week, S&P Dow Jone indices announced it will remove more Chinese companies from its indices as an alignment with US President Joe Biden's executive order to prohibit investment in businesses that are believed to have ties to Chinese military. With these recent events, the tension between U.S. and China persists with the performance of Chinese equities far below the expectations of investors.
(Source: https://am.jpmorgan.com/content/dam/jpm-am-aem/global/en/insights/market-insights/guide-to-the-markets/mi-guide-to-the-markets-us.pdf)
In the recent report by JP Morgan, you can see that the returns in the China market for the past 7 months have been dismal as compared to all other markets (Europe, Japan, U.S. etc). In fact, it's underperforming by quite a bit though the China market also saw the highest return (~30%) in the period (31st Dec 2019 to 6th July 2020). Given the recent drop in the past week, the returns in the China market...