Home Markets China’s regulatory crackdown creates value in parts of market

China’s regulatory crackdown creates value in parts of market

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The bottom fishing in China’s market has begun.

The country’s new restrictions on its education and technology companies should come as “par for the course” for emerging market investors, Astoria Portfolio Advisors founder and chief investment officer John Davi told CNBC’s “ETF Edge” this week.

“There’s always regulatory risk investing in China,” he said in a Monday interview. “Over the last 10 years, there’s been a series of regulatory tightening policies in China across a number of different sectors. Each time that sector gets hit 20-50%.”

“Right now, there’s value in there,” he said. “I think there’s more downside, but I think long term, … there’s a way to monetize these billions of people in broad emerging markets and China’s a good way.”

In the last month, the KraneShares CSI China Internet ETF (KWEB) has raked in around $2 billion in inflows, a sign that some investors are looking to the downtrodden group for value, Davi said. The ETF is down…

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