How to avoid the world's second biggest economy in your portfolio

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4 min read
fairly easy
The Chinese economy presents some unique challenges for investors. On one hand, China is home to several of the most dynamic and rapidly growing companies on the planet, such as electric car makers Xpeng and Nio as well as privately held TikTok owner ByteDance.
New York (CNN Business) The Chinese economy presents some unique challenges for investors. On one hand, China is home to several of the most dynamic and rapidly growing companies on the planet, such as electric car makers Xpeng and Nio ( NIO ) as well as privately held TikTok owner ByteDance .

But China's recent crackdown on the tech sector has slowed earnings momentum at big brand name firms includingand WeChat owner

Continued human rights concerns , brought to the forefront once more following questions about the safety of tennis star Peng Shuai , are also a problem for some investors.

So can (and should) you avoid the world's second largest economy? Some experts think that's exactly what investors should be doing.

"Investors have underestimated autocracy risk," said Perth Tolle, sponsor of theETF, a fund that has no exposure to Chinese stocks.

"You can't always factor in the risk of a government coming in overnight and saying to a company 'you can't really make a profit,'" she said.

Tolle told CNN Business that investors should be more concerned about capital flowing out of the country due to worries about Beijing exerting more control over companies in mainland…
Paul R. La Monica, CNN Business
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