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China analysts grapple with policy risk

Data is sparse, government policy is unpredictable and firms’ motivation is often a mystery. One answer is to treat official figures with suspicion and watch the real economy

When China’s new President, Xi Jinping, unveiled plans to clamp down on corruption this time last year, analysts scrambled to understand which stocks would be affected.

The sudden shift in government policy took its toll across a range of sectors, with revenue and share prices slipping at high-end liquor producers, casinos and hotel operators, watch manufacturers and makers of the much-loved Chinese Mooncake.

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