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China market meltdown creates ‘perfect recipe’ for investors

Despite this week’s chaos, some say the stock rout and planned reforms could make the country an attractive bet

China stocks down
China stocks down Photo: iStockPhoto

The chaos in China’s equities market, which has suffered one of the worst weeks in its history, has not curbed the appetite of some investors, who claim the stock rout and a planned programme of reforms in the country make it an attractive time to invest.

Chinese markets were suspended from trading on January 4 and January 7 after falling by the 7% limit set under the country's new circuit breaker system, which was only put in place on January 4. On the night of January 7, Chinese authorities suspended the mechanism, which has been widely blamed for triggering a sell-off that erased $1.1 trillion from mainland stock markets after less than a week of trading.

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