China's President Xi Said Will Deepen Anti-corruption Drive In Sectors Such As State-owned Firms, Energy, Finance And Infrastructure Construction
Portfolio Pulse from Charles Gross
China's President Xi Jinping has committed to intensifying the anti-corruption campaign within key sectors including state-owned enterprises, energy, finance, and infrastructure construction, as reported by Reuters citing state media.
January 08, 2024 | 11:11 am
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The iShares China Large-Cap ETF (FXI), which tracks large Chinese companies, may face volatility due to President Xi's intensified anti-corruption drive in sectors like finance and energy.
While the anti-corruption drive is a domestic policy matter, it can have implications for investor sentiment towards Chinese companies, particularly those in the finance and energy sectors. The FXI ETF, which includes large-cap Chinese firms, could experience short-term volatility as the market reacts to potential regulatory uncertainties and operational disruptions. However, the long-term impact is less clear, and the drive could also be seen as a positive step towards better governance, which might stabilize or even benefit the ETF in the longer term.
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