March, 2014 (Chinavestor) This March 2014 Newsletter is marking a turning point in our coverage of stocks. We are moving away from Chinese equities to US ones for a number of reasons. One of the reasons is that Chinese companies listed on American exchanges have abused trust for years and now the SEC is clamping down on them. There is a lot of uncertainty how this will play out. Nevertheless loss of investors’ trust is highly detrimental to future success of Chinese listings on foreign markets.
For the record. February made up for most of the losses suffered by US stocks in January 2014. The picture is somewhat different for Chinese counterparts though. The Dow Jones Industrial Average (INDEXDJX:.DJI) advanced 4.0% in February and is now just slightly in the red for the year. The S&P500 not only made up earlier losses but advanced to new all time record highs right before the end of February.