China’s campaign to improve the financial performance of listed SOEs comes as Japan’s stock market is benefiting from corporate governance reforms. However, China is not Japan. Beijing is battling a structural downturn, and corporate governance reforms alone are not going to turn sentiment around.
China is rolling out incremental measures to reignite its economy, but a veteran China policy expert says more needs to happen to boost China’s stock market.
The seemingly relentless decline in prices of Chinese goods amid tepid consumer demand is denting expectations that corporate earnings can revive the flagging stock market.
Asian equities had a rough start to the week except for Mainland China, which outperformed the region while Japan was closed for the “Respect for the Aged Day” holiday.