Chinese tech startup DiDi Global Inc. raised more than $4 billion preparing for a U.S. initial public offering (IPO), only for Beijing to yank the transportation provider’s app off the marketplace and initiate a cybersecurity review. While this may seem unreasonable to those unfamiliar with Chinese equities, experienced investors understand this is just another day in paradise when dealing with one of the world’s most unpredictable markets. That’s why investors need to understand Chinese stocks.
Chinese stocks carry all the same risks as U.S. stocks. Add in the ever-present threat of an authoritarian regime and a touch of misinformation, and you create a very tricky environment for investing. Of course, that hasn’t stopped all Chinese firms from becoming household names — especially those in the booming tech sector. Investing in China will always be nerve-racking, and Beijing has no issues completely changing the rules on…
