China Governance and Regulatory Risks to the Fore
17 August 2021
This article has been prepared by Northcape Capital, the underlying investment manager for the Warakirri Global Emerging Markets Fund.
The recent “China rout” reflected a raft of government announcements/edicts across a range of sectors that have the potential to severely impact growth and profitability on a sustained basis. Current valuations to us suggest that the downside risks on China are still material if there are no systemic improvements in China’s policy settings and overall corporate governance.
