the Financial world faced a choice country for investment opportunities and economic cooperation, writes CNBC. Main options: the USA is the biggest economy in the world, and China, against which Washington imposed sanctions.
the newspaper calls the Chinese stock market and bond one of the most attractive in the world, and there are several reasons. Home — it size: China’s financial system has assets of about 40.7 trillion dollars (the exact value is unknown due to the lack of official reporting), trailing only the US with 100 trillion.
however, due to insufficient development caused by the relatively recent transition from full socialism to capitalism, the local market has great potential for development and provides increased opportunities for players willing to occupy empty niches.
an Additional incentive for investing in China is the policy of the government in recent years aimed at increasing the openness of the national economy. Gradually removed restrictions on the ownership of assets from different industries to foreigners.
However, the recent politico-economic confrontation between Washington and Beijing could offset the efforts of the authorities to no. The US has already imposed restrictions on the work of the smartphone manufacturer Huawei, and messenger WeChat and mobile application TikTok. In early August, to be joined sanctions against the head of Hong Kong Carrie Lam and 10 more Chinese officials involved in, according to the White house, to the introduction in the region of the Chinese national security law. The United States believes that it restricts the autonomy of the city with the status of special administrative region of China, guaranteed by agreement with the UK until 2047.
the Sanctions will not affect China’s financial sector and as such is directed only against specific officials, however, still negatively affect the business climate in the Asian country. Potential investors will now be to distrust the Chinese assets, because the potential extension of sanctions can touch them. American law allows to expand sanctions on those who do not comply with existing restrictions and cooperated with their objects.
faced with a dilemma will also be companies listed or looking to enter the Hong Kong exchange Hang Seng — one of the world’s major venues. Those who decide to choose China probably will not be able to fully deal with US and develop business there.
