The downturn in China’s stock market is not a very real risk to the global markets, Asian equities expert Simon Male said Friday. The Shanghai Composite index plunged 7 percent on Friday, suffering its biggest one-day loss in five months. However, the market is still up almost 30 percent for the year.
Any risk of global contagion would be through multinational companies doing business in China, said Male, the head of Asian equities for Auerbach Grayson.
However, because only 7 percent of Chinese individuals are set up to trade stocks, the market gains and speculations have been largely in the hands of a few very wealthy investors, he noted.