Type to search

Ukraine Sanctions Risk Puts China Stocks in Valuation Trap – SCMP

What investors cannot price is the risk of sanctions on China’s biggest companies, SCMP reported

US officials are concerned about possible espionage after 100 Chinese nationals were found near military bases or sensitive sites in recent years, a report said on Sunday.
The US added the names of 13 firms in China to its Unverified List on Tuesday because it has not be able to conduct due diligence at these sites. File photo: Reuters.


Chinese stocks are on “cheap sale” after a US$2.4 trillion sell-off in both onshore and offshore markets since Russia invaded Ukraine. What investors cannot price, however, is the risk of sanctions on China’s biggest companies, the South China Morning Post reported.

As a result, investors should favour markets that are least exposed to the secular US geopolitical conflict with Russia and China, according to strategists at BCA Research. The risk premium-compression trade, touted by strategists at Goldman Sachs, can possibly wait.


Read the full report: South China Morning Post






Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years and has a family in Bangkok.


AF China Bond