The recent China regulatory crackdown on tech firms US IPO’s caused a dip in the value of shares, but financial analyst Arthur Kroeber warns that jumping on the bandwagon now also carries huge risks, according to Investing.com.
The weakness in China shares may offer a buying opportunity, but there are risks to consider, says Arthur Kroeber, head of research at Gavekal Research, an investment consultancy. “We now know this is a regulatory minefield, and those who expose themselves to the sector are taking on a lot of volatility.” He adds that “If your horizon is long term, this is going to be one of the growth stories of the next decade and you have to ride it out. But if you are more short term, you may say it’s too complicated and come back in a year when things have calmed down.”
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