A new rubric? China's new model for dealing with income inequality and data
A recent wave of new regulations in China focusing on a number of sectors caught many investors off guard. Some commentators have declared that China’s uncertainty premium, the return investors require to compensate for extra risk of unexpected policy action, has risen significantly in the last few months. However, we believe that while the new regulations aimed at increasing data security and tackling inequality will cause some serious short-term disruptions, they have the potential to bolster China’s long-term growth prospects.
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