China further unnerves foreign business as latest crackdown snares experts used by hedge funds, CEOs

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China is becoming increasingly inhospitable for foreign business based on the latest crackdown on a global research company. Read on.

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Capvision, founded in 2006, said in a statement posted to its WeChat account on May 8 that it would uphold national security policies and play a leading role in the healthy development of the consulting industry. Bloomberg calls and emails to Capvision on May 9 were not returned. It has more than 2,000 clients including hedge funds, management consulting firms and multinational companies, according to its website.

China continues to push for more investment after its reopening from Covid Zero. Premier Li Qiang — the country’s No. 2 behind Xi — vowed in March to establish a “broad space” for international companies to develop there. China has welcomed a host of leaders and business delegations, including from Germany and France. Last month, China’s Politburo urged greater efforts at boosting foreign investment.

Global investors are souring on the nation’s stocks, with a revival after the country emerged from Covid Zero proving shortlived. The MSCI China Index slumped two per cent on May 9, taking its decline from a January high to 16 per cent. Compared with its peak in 2021, the gauge is down more than 50 per cent.Article content

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China further unnerves foreign business as latest crackdown snares experts used by hedge funds, CEOsChina is becoming increasingly inhospitable for foreign business based on the latest crackdown on a global research company. Read on.
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