Capital Group’s Chen Says China Investors Need In-Country Staff
(Bloomberg) -- Noriko Honda Chen, an equity portfolio manager at Capital Group, said that investment firms need to employ people based in China to understand where to put their money to work in the country now more than ever.
“China has one of the most dynamic markets, where things can change very quickly -- especially competition,” Chen said, speaking Thursday at an event sponsored by Morningstar Inc. “It’s critical to have on-the-ground resources there.”
U.S. business leaders and investors have been rattled in recent months as China’s government cracks down on sectors like technology and education. The government imposed a record fine against Alibaba Group Holding Ltd. and torpedoed Ant Group Co.’s planned public offering as President Xi Jinping strives for “common prosperity” in the country. Jinping’s government also overhauled its out-of-school education sector, banning private companies from teaching during weekends and vacations, among other restrictions.
The swiftness of government intervention can change the fates of even large companies in the world’s second-largest economy. Leon Eidelman, a portfolio manager in the asset management arm of JPMorgan Chase & Co. said that his division covers more than 600 companies in Hong Kong, China and the greater China region.
“If you just kind of rely on the market to bring these things to you, then you end up being given things that are too thematic,” he said. “Pretty much everybody that we’re adding is going to be added to cover additional companies in China.”
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