Recent crackdowns have swept the education technology, video games and entertainment sectors in China. Companies that teach the school curriculum, for example, are now banned from making profits, raising capital or going public.
The meltdown in Chinese equities from regulatory tightening has offset the strong equity performance in Taiwan, Australia, Singapore and India, raising concerns for worried investors.
As a result, the MSCI AC Asia Pacific Index has been relatively flat year to date, says Winnie Chiu, equities adviser at Indosuez Wealth Management’s markets, investments and structuring division.
