China’s capital markets set for ‘renewed growth for many years to come’ after Beijing’s rescue actions: investors
- Consumer sentiment and entrepreneur confidence should ‘continue to pick up from this point’, Primavera Capital’s Fred Hu says at private-equity summit
- Beijing’s ‘pragmatic’ efforts to boost recovery will strengthen the capital markets, enhance Hong Kong’s connector role, speakers say
Consumer sentiment and business confidence will pick up now that China has introduced a series of “pragmatic” measures to revive the property and capital markets with a view to aiding its economic recovery, according to private-equity investors.
“As the Chinese government introduced more pragmatic measures to deal with the housing crisis and also the ongoing efforts to improve the regulatory policy framework, consumer sentiment, especially business entrepreneurial confidence, will likely continue to pick up from this point,” Fred Hu, founder of private-equity firm Primavera Capital Group, said on Monday at the Greater China Private Equity Summit in Hong Kong.
The improved views will drive personal consumption and private investment spending, he added.
Clear and consistent macroeconomic and sector-level policies are required to improve the confidence and sentiment of consumers, companies and investors, both domestically and abroad, towards China, Joe Chang, principal of primary fund investments at private-equity giant Carlyle Group’s unit AlpInvest Partners, said at the summit.
“In the last month or so, we’ve witnessed a lot of encouraging signs from the government really taking it seriously, including the real estate sector, which is a big thing – 25 per cent of the economy,” he said.
