China’s entrepreneurial capitalism faces grim future

In Could 2022, China’s Vice Premier Liu He signaled the federal government’s intention to finish its “regulatory rectification” marketing campaign — a raft of rules imposed on the training, ride-sharing and know-how sectors.

He’s the highest financial advisor to Chinese language President Xi Jinping — so his message will need to have been accepted by Xi, who appears to have lastly awoken to the harm the year-long crackdown has wrought on investor sentiment.

The Heng Seng index dropped by 23.7% between December 2020 and mid-Could 2022, a outcome partly defined by the regulatory crackdown. Whereas the worst seems to be over, the deeper points brought on by the marketing campaign stay unresolved.

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