In China, investors throw themselves into the arms of power

Chinese sanctions are more scary than those of the United States. In any case, this is what can be deduced from the financial movements currently observed in China. In recent months, Xi Jinping has cracked down on a series of companies that have become too important. These measures caused a general upheaval among investors.

In November 860, the government enacted a series of anti-monopoly laws that have given a serious brake to sectors becoming too powerful, including finance, video games and e -trade. Jack Ma, the fourth richest man in China and CEO of the giant Ant Group (Alibaba) has even disappeared from circulation for two months after his company’s IPO was halted.

Result: Scared of potential new sanctions, local and foreign investors flock to the sectors which still benefit from the favors of power. The Financial Times reports as well as the venture capital placed in the semiconductor sector more than quadrupled recently, to reach 8.9 billion dollars (7, 48 billion euros).

The hand completely visible from the market Semiconductors are precisely one of the highly strategic sectors in which the authorities wish to invest. While the United States is trying to limit China’s stranglehold on this market, Beijing wants to produce 70 itself 70% of its microchips from here to 2025.

In addition to chips, private equity is flowing into the renewable energies, electric vehicles and autonomous driving . Markets on which China is betting its future.

If Beijing has therefore partially succeeded, that does not necessarily mean that all the capital fleeing the repressed sectors is immediately redirected to strategic sectors.

Masayoshi Son, the Japanese CEO of Softbank, for example announced that he was suspending investments in China . According to Reuters, India and other emerging markets have particularly benefited from the investment flight.