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The Rob Vinall Podcast

Is China Investable? Panel at RV Capital's 2025 Annual Gathering

Jan 16, 2025
Yixin Li runs a Tokyo-based equity fund focusing on China, Graham Rhodes manages Long River in Hong Kong, Fred Liu leads Hayden Capital with a long-only strategy, and Sofia Hou invests globally with a focus on China. They dive into the complexities of investing in China amidst geopolitical tensions, discussing the rapid growth of its electric vehicle market and integrated supply chains. The panel reflects on state influence, recent policy changes, and the need for enhanced domestic consumption, offering nuanced insights from their firsthand experiences.
54:58

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Quick takeaways

  • China's economy offers attractive investment opportunities but is complicated by geopolitical tensions that influence decision-making.
  • Consumer sentiment in China remains low despite urban vibrancy, impacting investment strategies and reflecting broader economic uncertainties.

Deep dives

Understanding China's Investment Landscape

China's economy presents both lucrative opportunities and significant challenges for investors. Although China boasts successful companies and appealing valuations, geopolitical tensions, particularly with the U.S. and Taiwan, create uncertainty for investment decisions. Panelists emphasized that the question of whether China is investable links directly to pricing; asset value declines might mean that even with troubled conditions, investing could be advantageous at the right price. Investors must contextualize their strategies within the broader landscape of China's evolving economic climate.

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