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A lot of the top performers on China’s stock market this year are the same ones that have enjoyed stellar performances during the past decade, according to a new report.
The market has been a magnet for Chinese investors, who flock to stock markets to find bargains.
But many of those who have made fortunes in China’s booming stock market are now facing competition from overseas investors, which are looking for a stable return.
The latest research by Canadian research firm BMO Capital Markets found that while China’s top five equity markets have posted double-digit gains over the past year, the world’s largest economy has seen its market capitalization shrink by about 30 per cent, while Canada’s top three equity markets account for about a third of its market cap.
The research, which covers the past two years, is based on data from China’s government-backed market watchdog and research firms.
It shows that the world has been on a buying spree in recent years, while China has slowed its expansion.
While China’s economic growth has slowed in recent quarters, there has been an uptick in foreign investment in the country.
BMO found that in the first half of 2017, there were 2.5 billion foreign direct investments in China.
That was more than twice as much as the same period in 2016.
It also found that China’s growth rate of 5.3 per cent in the second quarter was higher than the global average, and the growth in the third quarter was almost double that of the global economy.
China has also been experiencing a series of political and social changes that have made it more difficult for investors to stay involved in the stock market.BMO said China’s domestic capital market has become increasingly unstable, and foreign investors are more likely to invest in China, particularly in the tech sector.
The report also found the country has been experiencing its first major political upheaval since Deng Xiaoping, who led China from 1972 to 1979.
In his final years, China’s economy slowed to a crawl and the government was criticized for its authoritarian rule.
The new report found that there are now a handful of foreign investors buying into the market in China with a range of motivations, but they include a desire to invest for the country’s long-term growth and a desire for stable prices.
For many investors, China is still the top foreign investment destination, but this year, it is expected to fall to fourth, according BMO.