Individuals play pc video games at an web cafe in Fuyang, China’s Anhui province.
Lu Qijian | Visible China Group | Getty Photos
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SINGAPORE — Chinese language web shares made “outstanding” beneficial properties in 2020 because the Covid-19 pandemic pushed extra business actions on-line — however this yr additionally marked the tip of China’s straightforward regulatory surroundings for tech firms, in response to J.P. Morgan.
Chinese language regulators, like their friends within the U.S. and European Union, are determining new guidelines to rein in monopolistic habits within the tech business.
That “will doubtless preserve the traders on the sidelines till there may be additional readability on anti-trust guidelines, together with detailed steering and, extra importantly, the regulation enforcement,” J.P. Morgan analysts wrote in a Tuesday report.
For traders nonetheless concerned with shopping for Chinese language tech shares, the analysts shared one technique to get round dangers introduced on by the tightening guidelines on the sector.