China

Serious Black, Samstag, 30. April 2022, 07:29 (vor 750 Tagen) @ NN

The founder and chair of one of Asia’s biggest private equity investors has criticised the Chinese government for policies that he says have resulted in a “deep economic crisis” comparable to the global financial crash.

Weijian Shan, whose group PAG manages more than $50bn, said his fund had diversified away from China and was being “extremely careful” about its portfolio in the country.

“We think the Chinese economy at this moment is in the worst shape in the past 30 years,” he said in a video of a meeting viewed by the Financial Times.

“The market sentiment towards Chinese stocks is also at the lowest point in the past 30 years. I also think popular discontent in China is at the highest point in the past 30 years.”

In the video, Shan said that large parts of the Chinese economy, including its financial centre Shanghai, had been “semi-paralysed” by “draconian” zero-Covid policies and that the impact on the economy would be “profound”.

“China feels to us like the US and Europe in 2008,” Shan added. “While we remain long-term confident in China’s growth and market potentials, we are very cautious towards China markets.”

https://www.ft.com/content/6bf52409-fe31-4f57-ae24-f2bd9146a698