The private capital sector in Asia-Pacific could receive support from the Chinese government’s economic stimulus package and further developments in other financial markets in the region, data provider Preqin said.
China’s contribution to the region’s private capital markets has declined significantly in recent years, but Beijing’s stimulus and reforms could spark a turnaround, says Preqin Research Insights Director of Performance and Evaluation , Angela Lai said in a research note published Friday. .
“China remains an important player in Asia-Pacific’s private capital markets, and a strong economic recovery could provide further upside to our regional forecasts,” Lai said. Ta. However, “deterioration may warrant a downward review.”
He said China’s gross domestic product (GDP) growth rate is one of the highest among major countries in the world, and as the Chinese government rolls out policy support and reforms targeting the real estate sector. It added that “significant changes” could occur in the coming years. It is also important to focus on technology development and value-added production, she said.
“If executed well, all of this has the potential to improve the long-term resilience of markets, with benefits extending not only to investors but also to neighboring trading partners,” he said. Ta.
President Xi Jinping has said that “hard tech,” or deep technology, is the key to the country’s development. Government funds are chasing deals in industries including integrated circuits, artificial intelligence and new energy vehicles. He also introduced the concept of a “new quality productive force” that focuses on technological innovation as the main driver of China’s productivity and breaks away from the country’s traditional economic model.
Preqin believes private market financing in the Asia-Pacific region will bottom out in 2023 and gradually improve, with an annual growth rate of 6.7% from the end of last year to 2029, the company note said. states.
