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.
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Episode notes
China's Economic Paradox
- China's economic growth benefits its people but not public company investors.
- The state's role in capital allocation and rapid supply growth hinder equity returns.
The Luckin Coffee Story
- Luckin Coffee's founder, despite fraud, started a rival company, Cotty, through franchising.
- This highlights the focus on supply over demand in Chinese investing.
The Rise of Chinese Companies
- Chinese companies have become formidable international competitors in various sectors.
- The integrated supply chain and rapid development cycles contribute to their competitiveness.
