Volatile market prompts Chinese retail investors to demand details of firms’ US exposure
China’s more than 100 million retail investors have seen the A-share market shed about 4.5 trillion yuan of value this month
Chinese retail investors who have seen this month’s tit-for-tat trade war wipe trillions of yuan from the value of the stock market are rushing to ask companies to disclose their business exposure in the United States.
Their anxiety spread on official investor relations platforms and in online communities, with questions directed to Shanghai- and Shenzhen-listed firms about the exact impact of the trade war on company finances and proposed remedial measures.
“Just how much are the tariffs affecting the company? It’s time for the board secretary to speak up,” an investor said on Eastmoney Guba, a popular online community for small investors.
“Has the Thailand factory started mass production? What’s the share of the US market coming from Thailand versus China? These are the questions shareholders care about most!”
China has more than 100 million retail stock investors – equivalent to the combined population of the United Kingdom and Canada – and they are particularly vulnerable when markets are volatile.
Public companies often reveal location-based revenue and overseas investment projects in quarterly, interim and annual reports.
Investor anxiety has been heightened by recent sharp swings in markets across the globe related to tit-for-tat tariff volleys by the US and China, the world’s two largest economies.