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The China risk is growing – investors should know that by now

The People's Republic is not only an important sales market for local companies, the "workbench of the world" also acts as an anchor point for many global supply chains, many of which have been interrupted since the beginning of the 2020 pandemic.

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The China risk is growing – investors should know that by now

The People's Republic is not only an important sales market for local companies, the "workbench of the world" also acts as an anchor point for many global supply chains, many of which have been interrupted since the beginning of the 2020 pandemic. The CCP's authoritarian policies at home and aggressive rhetoric towards Taiwan make China a difficult partner. Now the situation threatens to become even more complicated.

The global financial markets reacted correspondingly unsettled at the beginning of the week. The players tried to reduce the risk and parted with securities from the Middle Kingdom – and related to China. The sharpest falls were in Hong Kong and on the mainland. But there were also slight price losses on the western stock exchanges. WELT explains what investors should now know about the growing China risk.

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