ExclusiveVeteran investor Fang Fenglei on why the China ‘investibility’ debate is no debate at all
Influential financier who helped found CICC says arguments against China investment ‘do not hold water’
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, later chairing a China joint venture with Goldman Sachs.
Now the chairman of Hopu Investments, Fang discusses China’s investment opportunities, the artificial intelligence race, diversification from US dollar assets and Hong Kong’s growth potential.
There has been talk from abroad that China’s economy has peaked, and debates continue over whether China is still “investible”. What is your assessment of foreign investors’ sentiment?
Given their different sectors, standpoints and risk appetites, alongside political, economic and cultural influences, institutions hold divergent views on China.
On a practical level, multinationals can achieve stable operations in China through equity-related and governance-oriented arrangements with Chinese partners.
Take Starbucks’ joint venture deal with Boyu Capital, for instance. Boyu holds a 60 per cent stake, while Starbucks retains a 40 per cent stake and keeps ownership of the brand’s intellectual property rights. For McDonald’s China, a Citic-led consortium holds 52 per cent, with McDonald’s owning 48 per cent.
