2021 had been an eventful year for China and the rest of the world. The year started off well across most major stock exchanges, with growth stocks rising in February 2021, coupled with a hopeful outlook as various pharmaceuticals announced their successful COVID-19 vaccine trials. Despite this, the year is expected to end very differently. Growth stocks have come down significantly while value stocks have outperformed in its place.
A brief summary of China Stocks’ turbulence in 2021
Uncertainty was the theme of the second half of 2021, with China accelerating regulatory actions on the internet sector and then on education and casino sectors. This led to a severe decline in the Chinese stock market. To add fuel to fire, the Chinese real estate sector began souring with major property developers missing debt repayments, which caused fear of defaults. This means that 2021 was a very volatile time with the peak to trough range of at least 20%...