Chinese equities are in the doldrums. Both the Shenzhen composite and the Shanghai composite indices touched their lowest level in over three years this week, marking a loss for both indices of around 10 per cent since the start of the year.
But not all Chinese stocks are falling. Hong Kong’s Hang Seng China Enterprises Index, composed of mainland companies, is up by around 6 per cent. So stock selection matters. Chart of the week takes a look.