China's leaders failed to impress markets with their reform agenda for the next decade and investors sold Chinese shares on Wednesday concerned with Beijing's apparent reluctance to overhaul dominant state-owned firms.
The communique following a secret leadership meeting listed several target areas for reform, but its language was more vague than some had expected and it explicitly underscored the importance of the state sector in the economy.
But rather than lift state firms that dominate major benchmark indexes in China and Hong Kong, it spurred worries that it would leave them exposed once the authorities made good on their pledge to give markets a "decisive" role in the economy.
"The increased reliance on market mechanisms is good for the economy, but bad for the equity markets. While that will force companies to be run more efficiently, more competition will hit their bottom line," said
Source: Reuters
As we have been following through this blog about past experiences of reforms in China, the
reform agendas are more written between the lines, and take time to be implemented.
Source: Reuters
As we have been following through this blog about past experiences of reforms in China, the
reform agendas are more written between the lines, and take time to be implemented.
