Veteran investor Fang Fenglei on why the China ‘investibility’ debate is no debate at all
Over the past three decades, investor Fang Fenglei has had a major role in shaping China’s capital markets. He worked with Morgan Stanley in the early 1990s to help create the country’s first joint venture investment bank – China International Capital Corp. Then, at the start of the millennium, he spearheaded the listing of state-owned giants in Hong Kong as CEO of Bank of China International,…
Veteran investor Fang Fenglei addresses the ongoing debate surrounding China's "investibility". Over three decades, Fang has played a significant role in shaping China's capital markets, from his work with Morgan Stanley in the early 1990s to his current role as chairman of Hopu Investments. He emphasizes that foreign capital serves as both "distant water" and "living water" for China, providing long-term stability and stimulating market dynamism.
Despite concerns about falling birth rates and weak domestic demand, Fang maintains that these are global issues and that China's pursuit of moderate, high-quality growth is a healthy trajectory. He points out that China's property adjustment, driven by proactive government efforts to deleverage and prevent systemic risks, has reshuffled resources towards strategic emerging industries like AI and biopharmaceuticals.
With China and the US leading in AI, Fang acknowledges the possibility of bubbles but believes that the build-up of venture capital and valuation expansion could accelerate technological advancement and infrastructure development. He stresses that the recovery from major shocks in China typically takes about as long as the shock itself, and that sustained improvement in price indicators, such as the consumer price index (CPI), suggests a positive outlook.
Written by urgent.news from SCMP Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
