(May 12): China’s unpredictable policy making is deterring foreign investment that the country’s cash-strapped cities are desperate to entice. Appetite for investment has been further weakened by a clampdown on foreign consultancy firms relied upon by global investors and multinational firms to help understand China. Global investors have lost interest in Chinese equities, with the MSCI China Index dropping about 50% from its 2021 peak. In response, the Politburo — the top decision making body of the Communist Party — last month called on local governments to boost foreign investment amid weak domestic demand and a difficult recovery. Singapore has seen delegations from Chinese cities almost every week this year, according to an official who asked not to be named as they weren’t authorised to speak publicly.

Source: The Edge Markets May 12, 2023 15:05 UTC