Folks remember...China is a Socialist/Communist country! They do NOT operate the same way we do! They do not have private wealth that's accumulated by individual investors! Their Government and Central planners plan their investment strategies, and the State allocates their resources, along with select international fund managers.
Guess what? They don't have any private equity markets either, and as a result their investments particularly in hi tech are vanishing! Poof!!!!!!
Guess what Trump is restricting and taxing in this latest round of tariffs? You guessed it...hi-tech...which China lacks and MUST HAVE if it is to keep up as a world economic power. Also remember...the US trades in the world's currency. China does not. The Dollar is king in world trading and China is forced to manipulate its currency (devalue it) in order to buy or trade in more valuable US dollars. This means investments in China are fleeing. They cannot last a protracted "trade war" with us, without collapsing their currency and/or economy.
Read...learn....
Chinese private equity funding hit by sharp downturn
https://www.ft.com/content/c0cf8c6e-4634-11e9-a965-23d669740bfb
excerpt:
The fall — revealed in a new report published on Friday — underlines how the
Chinese private equity market has gone into reverse from the boom times of a few of years ago, when scores of new funds were launched and the country’s technology companies attracted sky-high valuations. Hundreds of small, inexperienced Chinese private equity funds that rushed into investments in technology and new economy companies have begun to suffer from a sharp contraction in fundraising and tougher environment for exiting investments.
...more
“The level of optimism and fervour for investing in the tech sector foreshadowed what we are seeing now,” said Usman Akhtar, a partner at Bain & Co, referring to how many small private equity houses are struggling to exit from investments at expected prices. “It’s the start of this and it may take a few years to pan out.” The tightening of credit in China is a broad trend with an impact far beyond private equity. Banks, trusts and other sources of capital have been squeezed during China’s attempt to slow the growth of debt.