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(Vasiliy Yakobchuk/iStockphoto)

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Latest risk factor for China stocks? When love goes bad

Broken marriages are an unwelcome new risk factor for China investors. Shares in Longfor Properties dropped 4 per cent on Nov. 20 on news that its founding couple had divorced and split their controlling stake, sparking fears of a covenant breach. Family feuds are growing more common, and investors are taking a share of the strife.