Over the past two years, China has witnessed an increasingly tightening regulatory environment. A series of unexpected regulatory actions from policymakers contributed to a challenging business environment and impacted overall market sentiment. While there is growing optimism toward the changing regulatory environment, there is still no end in sight, and various Chinese stocks continue to take a hit.
Amid this backdrop, it could be wise to avoid struggling Chinese stocks The9 Limited (NCTY), Recon Technology, Ltd. (RCON), and ZW Data Action Technologies Inc. (CNET).
