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Bailey McCann, Opalesque New York: The alternative investment market in China is maturing and delegates at the recent Opalesque Shanghai Roundtable expect to see continued growth despite concerns around valuations. The Chinese government has also been aggressive with new regulations designed to improve risk management, which delegates say should improve the marketplace.
"The Central Government is very concerned about the growing shadow banking industry and
overall leverage in the financial system," said Paul Heffner, Co-Founder, Adamas Asset Management. "There are also new rules are define qualified investors to have at least 5 million RMB in financial assets or have earned more
than 400,000 RMB a year for three consecutive years. These are the steps and measures in place to protect, which I think
actually are very good."
In addition to these rules, the government has also made it harder for Chinese property investors to trade or speculate in real estate. The government wants individuals to live in their properties. Heffner expects that this will actually shift more investor dollars into equities strategies.
Perhaps counterintuitively, Keith Wu, Managing Director and Head of Equity Investment, China Everbright is already more constructive on Chinese banks because of regulation. "We see value in Chinese banking stocks," he says. "The reason why we are
positive about them is that we think that the government authorities are managing the
systematic risks very wel...................... To view our full article Click here
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