Tony Tan, DBA, CFA, is co-head of the CFA Institute Ethics, Standards, and Professional Conduct division. He is particularly responsible for ethics education offerings and the professional standards of CFA Institute. He is also a member of CFA Society Singapore.
With a combined market capitalization of $10 trillion, the Shenzhen and Shanghai stock exchanges are the second largest in the world, writes Tony Tan, DBA, CFA, and recent research demonstrates that, contrary to popular perception, they don't move in lockstep or mostly in response to macro factors. Investors searching for alpha cannot ignore them.
Although China is transitioning toward a capitalist system, SOEs continue to play an important part in China’s economic development. The involvement of SOEs has led to very little progress in the financial markets, which, in turn, has caused distortions in the allocation of capital to unproductive industries.