Opinion: China’s Rapid-Fire Regulatory Moves Have Unnerved Investors. That Could Be Bad for the Real Economy

The factors that have had the biggest impact on China’s stock market this year have little to do with the economy, the Covid-19 pandemic or U.S. sanctions, but mainly point to a series of new regulations. They include policies aimed at regulating internet platform companies and the education industry, as well as energy conservation and carbon reduction policies that contributed to power shortages in some regions. They also include tightening supervision on the real estate sector, which has led to slower property sales and liquidity crises at some privately owned developers. A-share stocks, especially those in the internet and new economy sectors, have slumped from the level at the beginning of this year, despite a recent rebound.