Has the recent crackdown of the Chinese government on flourishing non-state-owned enterprises changed the sentiments and perceptions of risk within the investment professional community ?
SONAR|HES-SO
- Pazmandy, Manon
- Ruiz, Frédéric (Degree supervisor)
- Genève : Haute école de gestion de Genève
100 p.
Bachelor of Science HES in International Business Management: Haute école de gestion de Genève, 2022
English
Chinese high growth non-state-owned companies have been impacted at the end of 2020 and throughout 2021 by Chinese government reforms. Following the “Common Prosperity” path, Xi Jinping wants to reduce inequalities in Chinese society while focusing on the lower middle class to be more involved in economic life through consumption and income spending.
Not only Chinese technology, internet, and e-commerce companies were affected by the reforms implemented but also transportation, gaming, and private education firms. Indeed, the monopoly these companies had in their industries, the amount of private data collected, and the non-compliance with the laws on private tutoring, gaming, cybersecurity, data security, listings, advertising, pricing, and mergers and acquisitions prompted the Chinese government to take action.
The objective of this research is to determine whether the recent strict governance of China over its growing and powerful enterprises has changed the sentiments and the perceptions of risk within the investment professional community. Based on the interviews of experts who have been selected following specific criteria, questions regarding Chinese governmental risks, perceptions on these risks, change in perception, opinions on the reforms implemented and their impact, change in investment strategy, investments for 2022, and regulatory risks were asked of them.
This research proved that most of the experts interviewed did not change their perceptions and sentiments of risk. At one time these restrictions have been negatively or surprisingly perceived by the investors and affected some perceptions due to the circumstances. But also due to the rapid and strict way these reforms were implemented without considering the impact on investors. The companies affected have seen their performance plummet as a result of a massive sell-off in these stocks.
Even though experts have assessed a rather high Chinese regulatory risk, the investment professional community remains very positive. No expert has considered for the coming years reducing their exposure to China following this event. The professional investors with their great knowledge of the country, see rather a great future potential.
Not only Chinese technology, internet, and e-commerce companies were affected by the reforms implemented but also transportation, gaming, and private education firms. Indeed, the monopoly these companies had in their industries, the amount of private data collected, and the non-compliance with the laws on private tutoring, gaming, cybersecurity, data security, listings, advertising, pricing, and mergers and acquisitions prompted the Chinese government to take action.
The objective of this research is to determine whether the recent strict governance of China over its growing and powerful enterprises has changed the sentiments and the perceptions of risk within the investment professional community. Based on the interviews of experts who have been selected following specific criteria, questions regarding Chinese governmental risks, perceptions on these risks, change in perception, opinions on the reforms implemented and their impact, change in investment strategy, investments for 2022, and regulatory risks were asked of them.
This research proved that most of the experts interviewed did not change their perceptions and sentiments of risk. At one time these restrictions have been negatively or surprisingly perceived by the investors and affected some perceptions due to the circumstances. But also due to the rapid and strict way these reforms were implemented without considering the impact on investors. The companies affected have seen their performance plummet as a result of a massive sell-off in these stocks.
Even though experts have assessed a rather high Chinese regulatory risk, the investment professional community remains very positive. No expert has considered for the coming years reducing their exposure to China following this event. The professional investors with their great knowledge of the country, see rather a great future potential.
- Language
-
- English
- Classification
- Economics
- Notes
-
- Haute école de gestion de Genève
- International Business Management
- hesso:hegge
- Persistent URL
- https://folia.unifr.ch/global/documents/321862
Statistics
Document views: 76
File downloads:
- Report_Pazmandy_Manon.pdf: 430