Is It too Risky to Invest in Chinese Stocks?
The Evergrande episode last week shows just how risky Chinese investments have become and yet how integral its marketplace is to the global economy. The news that the property developer had missed an $83 million interest payment sent shockwaves rippling around the world, sending the Dow Jones Industrial Average (DJINDICES: ^DJI) tumbling some 900 points over several days.
While Beijing's reassurances that it can contain the crisis seems to have calmed the market's jitters -- the Dow has since regained all the ground lost -- the widespread corporate crackdown the government is carrying out against broad swaths of its economy does raise the valid question of whether China is a market worth investing in right now.
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Source Fool.com
