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Crackdown shows China’s ready to do ‘whatever it takes’ when it sees social problems,
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Crackdown shows China’s ready to do ‘whatever it takes’ when it sees social problems, major Asia bank says
  • Dennis Lam of DBS says stock market volatility is not a consideration when China wants to address socioeconomic issues.
  • For sectors that face high risk of regulation, including education, e-commerce, internet and health care, it’s “prudent for the investor to basically expect the worst,” he said.
  • His comments come after a week of volatile trading for Chinese tech and education stocks, including two listed in the U.S.
[Image: 106910593-1626253221629-gettyimages-8378...=740&h=416]

China’s crackdown on private education signals that Beijing is willing to take strong action when it perceives socioeconomic problems — regardless of what investors may want, according to an equity strategist at a major Asian bank.


“The government is ready to do whatever it takes to rectify perceived social, economic issues,” DBS’ Dennis Lam said during a webinar Thursday, pointing to the speed, efficiency and strength of China’s new policy.

“Stock market volatility is not a consideration at all,” according to Lam.

For sectors that face high risk of regulation, including education, e-commerce, internet and health care, it’s “prudent for the investor to basically expect the worst,” he said.


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