​Given that the regulators have been clamping down on the internet and education industries.. Should investors be shifting their China positions to the A-share market instead?

Regardless of the regulatory clampdown, I think all investors should have at least some exposure to A-shares given the growing heft of its market. The latest action just accelerates that investment thesis.

​

Some of the most innovative companies in China are now listed in Shanghai and Shenzhen, including the world's largest battery maker and the world's largest advanced solar panel manufacturer.

​

The Chinese education industry is definitely a "no-no" at this point for investors because of the extreme uncertainty over the viability of business models across the sector.

​

Consumer internet is fine - the government isn't out to destroy them - but I'm not a huge fan of the sector long term as I see limited optionality for the platform giants and more regulatory scrutiny going forward.

Although many edutech stocks are trading below the cash on their balance sheet, I would avoid them because the Government views education as an equalizer and clamping down on the rising costs of education.

​

Internet companies wise they are mainly after their monopolistic behaviour and the Government is not out to crush them. Keep in mind that the government is encouraging their tech giants to expand into tier 3 and tier 4 cities to benefit those in the rural communities and for big tech to expand into industrial internet.