Should I dump all Chinese stocks because of regulations as a foreign investor?
If you are asking the question *NOW* then you really need to rethink your portfolio.
What the Chinese government has been doing in the last few weeks is nothing unusual, and if it spooks you then it might be better for you to sell everything now because you likely never should have invested in Chinese stocks
If you read the 10-K and prospectus for the stocks there is this whole section on risk factors saying that the stocks could take because of government policy.. If you are nervous now it means you didn't read the prospectus and didn't do your homework.
On the other hand the roller coaster works both ways. You shouldn't surprised if the Chinese government makes another announcement in six months that causes the markets to rise.
Also the fact that the Chinese government is willing to let the markets tank two days in order to implement a policy that's wildly popular and they think is long term good for the economy might not be a bad thing. As we've seen with COVID the Chinese government is willing to do short term pain for long term gain.
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