Commentary Finally, there is increasing clarity around how the Chinese Communist Party (CCP) intends to regulate its giant corporations, which is invaluable to U.S. investors assessing Chinese stocks. Regulatory guidance has come fast and furious over the last several months, sending Chinese stocks—at least those traded in the United States—into a tailspin. And most recently, CCP leader Xi Jinping’s directive to increase “common prosperity” has only elevated volatility as investors look to analyze its impact. Curiously, there’s a certain divergence with regard to how investors have reacted to the recent regulatory deluge. The KraneShares CSI China Internet ETF, which tracks a basket of Chinese technology firms listed in the United States and Hong Kong, has declined more than 45 percent since March 1. By comparison, the VanEck Vectors ChinaAMC SME-ChiNext ETF, which tracks a basket of top 100 domestic A-share stocks listed on the ChiNext board in Shenzhen—where most of …