Because China is indispensable, they are eager to visit Sovereign | Fund | China
According to a report on the website of the South China Morning Post in Hong Kong on June 26th, at least 9 executives from multinational corporations, from Singapore's sovereign wealth fund Singapore Government Investment Corporation to Goldman Sachs Group and US private equity giant Blackstone Group, have traveled to Beijing to meet with senior executives of China's sovereign wealth fund, China Investment Corporation Limited.
CIC also received executives from Ruisheng Investment Company, HSBC Group, BNP Paribas, Allianz Group, and Degao Group.
During these meetings, CIC Chairman Peng Chun and General Manager Ju Weimin discussed with visitors the prospects of China and the global economy, as well as the capital market landscape. The investment footprint of these visitors in China and the region is expanding day by day.
The report states that such insights are very valuable for fund managers who are trying to decipher the thinking behind China's economic goals. The market value of Chinese stocks included in the Mingsheng China Index is 2.3 trillion US dollars. The Mingsheng China Index is the main indicator tracked by global funds.
Economists Robin Brooks and Jonathan Foton from the International Finance Association stated in a report on June 22 that "the escalating tensions between the United States and China have raised many issues." In addition to concerns about de globalization, "as foreign investors reduce their risk exposure, people are also paying attention to de risk.".
▲ On June 8, the opening meeting of the 14th Lujiazui Forum was held in Shanghai center Building.
"China is too large and deeply integrated into the global system to be 'deleted'," said Wang Yan, a Chinese market strategist at Canada's Emo Macro, in a report last month
"Global business and political leaders, including some Western allies of the United States, almost immediately flocked to China after China adjusted its epidemic prevention and control measures, proving China's indispensable role in global business."
These leaders include Anthony Reisler, co-founder and chairman of the Los Angeles based private equity firm Ruisheng Investment, Lin Zhaojie, CEO of Singapore Government Investment Corporation, and Du Jiaqi, Chairman of HSBC Group.
According to China Investment Corporation, Su Shimin, Chairman of Blackstone Group, arrived in China at the end of March this year to meet with Peng Chun and Executive Director Bao Jianmin. They discussed topics such as global economic and market conditions, investment priorities, and more.
The Degao Group, headquartered in Paris, is the world's largest outdoor advertising company. It has invested in Baima Outdoor Media Company, which operates the largest bus shelter media business in China, representing the strategy of Degao Group to expand its business scope in the Chinese market.
Other executives who visited CIC included Le Minghan, Chairman of BNP Paribas, Oliver Bate, CEO of Allianz Group, and Su Dewei, Chairman of Goldman Sachs Group. Su Dewei and Peng Chun exchanged views on issues such as the international market environment and China's economic potential.
Mohamed Aldi, Chairman of Enwei Capital, also visited. This Bahrain based fund manages approximately $50 billion in assets. Last October, the company partnered with Hong Kong based Fung Investment Limited to launch a $500 million fund to invest in the Greater Bay Area.
The report points out that these visits highlight the importance of learning about the Chinese economy from local people at a time of imminent geopolitical risks. Many Wall Street analysts are still optimistic about the prospects for China.
Wang Yan said, "Against the backdrop of rising geopolitical tensions and financial 'decoupling' between the United States and China, investing in China has become more important for global investors - not the opposite. It is unrealistic to completely ignore China. There is no substitute that can accurately mimic the performance of Chinese assets."
