A major selloff of Chinese stocks stemming from Beijing's regulatory crackdown on private businesses in a variety of sectors, including technology and education, is likely a "localized" phenonemon, John Bilton, the head of global multi-asset strategy at J.P. Morgan Asset Management, told Bloomberg TV on Tuesday.
Bilton said fears may spread to the United States and Europe, where "investors who perhaps have got a little bit more ... nervousness to them may want to ... sit on their hands." But, he continued, "let's make no mistake: What you're seeing going on right now is a classic battle between earnings delivery, which is coming through strongly out of the U.S., strongly out of Europe, and then you're seeing a reminder of some of the regulatory issues that persist within China."
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
-
Magnificent Tudor castles and stately homes to visit this yearThe Week Recommends The return of 'Wolf Hall' has sparked an uptick in visits to Britain's Tudor palaces
-
I'm a Celebrity 2024: 'utterly bereft of new ideas'?Talking Point Coleen Rooney is the star attraction but latest iteration of reality show is a case of 'rinse and repeat'
-
The clown car cabinetOpinion Even 'Little Marco' towers above his fellow nominees
-
Boeing machinists approve contract, end strikeSpeed Read The company's largest union approved the new contract offer, ending a seven-week strike
-
US economy still strong in final preelection reportSpeed Read It grew at a solid 2.8% annual rate from July through September
-
Boeing machinists reject deal, continue strikeSpeed Read The rejection came the same day Boeing reported a $6.2 billion quarterly loss
-
Ports reopen after dockworkers halt strikeSpeed Read The 36 ports that closed this week, from Maine to Texas, will start reopening today
-
The pros and cons of globalizationPros and Cons Globalization can promote economic prosperity but also be exploitative
-
A new stimulus might (or might not) jump-start China's economyTalking Points Fears of social instability drive rate cuts
-
Why are global stock markets plunging?Today's Big Question Europe, Asia and Wall Street have all suffered big falls after US economy data spooked investors
-
Why can't China turn its economy around?Today's Big Question The post-pandemic crisis puts pressure on Communist Party leaders
