As its government continues to make progress on capital-market reforms, and with fiduciaries having wider access to and confidence in the markets, few would argue that President Xi Jinping’s measures to attract foreign investment have not paid off. There are concerns, however, related to uncertainty regarding the potential fallout from a possible trade war, an economic slowdown that has been worse than expected and the pressure on companies related to their massive debt obligations. In response, Beijing has introduced moderate policy easing and chosen to soften its stance on deleveraging. This is in sharp contrast to the US Fed which has advocated monetary tightening and, in turn, a rising rate environment. Given the changing liquidity environment, along with the risk of capital controls, how can investors reevaluate and recalibrate their China exposures and strategy to take advantage of these trends? This esteemed panel of China investment vets will use their insight and experience, along with a bit of tea-leaf reading, to provide a GPS for investing in China. One that will get an investor from point A to point B directly, free of any unnecessary or hazardous detours. Issues to be explored will include:
- What are the political and macroeconomic risks that investors can expect in the near and longer term?
- What is on the horizon for debt and equity markets in China and how does this impact the rest of the global economy, both emerging and developed?
- What are the potential outcomes and where do the opportunities for institutional investors lie?
- What risks could arise and how can one anticipate/hedge against?
- What does accessibility require, how should it be approached and what is different about investing in China?
George Michael Gerstein advises financial institutions on the fiduciary and prohibited transaction provisions of ERISA. As co-chair of the fiduciary governance group, he assists clients with tracking, and understanding, the numerous fiduciary developments at the federal and state levels, including the rules and regulations of governmental plans. He also advises clients with respect to the fiduciary duty implications of ESG investing.