CLI positive China’s policy may address uncertainties

China has the intention to soften and balance economic impact, CLI said.

Despite the supply shocks and weaker business expectations in China, CapitaLand Investment (CLI) said it remains long-term positive on China on the back of policy announcements in the country.

Asked about handling uncertainties in China, CLI said China’s “Two Sessions” policy announcements that call for supportive pro-business and pro-consumption stimulus to steer economic and employment growth whilst addressing issues over the real estate sector and its capital markets.

CLI also pointed out that China has already expressed its intention to balance the economic consequences of the various pressures caused by the Omicron variant since the end of 2021.

“Importantly, we also believe that the current headwinds may generate interesting counter-cyclical and opportunistic investment themes,” read the firm’s response. 

It also sees that their extensive domestic presence signals a competitive advantage that will allow them to identify and capitalise investment opportunities that may emerge.

“Our successful registration as a private equity fund manager in 2021 allows us to conduct RMB-denominated fundraising and provide fund management services in China. This will expand our current suite of fund management capabilities, and allow us to tap on Chinese domestic fund flow, further expanding CLI’s fundraising channels,” CLI said.