Chinese stocks ‘near all-time low’, says China Renaissance CEO
“I think the market is about to bottom out now,” Fan Bao, CEO of China Renaissance, an investment bank and private equity firm, said in an interview with CNN Business in Hong Kong. Friday, referring to Chinese stocks. “I must say, [overall investor] the feeling is pretty bad.”
Bao said he believed China was not facing a crisis, but rather the debate had become “too negative” lately as global asset managers worried about opportunities investment in the world’s second largest economy.
“We actually see this as a great investment opportunity,” Bao said, sitting in front of a sign in his office that read, “BullMarket4ever.”
He added that his Beijing-based company, which invests in startups through several funds, had recently been able to secure deals at valuations that were half of what they were before.
“I don’t think people need to panic.”
Bao is motivated enough to remain optimistic – he is a current and former adviser to the Shanghai and Shenzhen stock exchanges, respectively.
His firm, which manages about $7.7 billion in assets, also relies heavily on the performance of Chinese tech firms, which have come under intense pressure over the past 18 months as regulators aimed to some of the biggest names in the industry.
China Renaissance treasury shares are down around 40% year-to-date in Hong Kong.
At least 32 the cities of China are in total or partial containment, which could impact up to 187 million people across the country, according to CNN calculations.
Despite its optimism, China Renaissance has also slowed its pace of new investment this year, according to Bao.
But he ignored major concerns, comparing current market conditions to other past downturns.
Bao said that while he felt it was “very hard to stay calm these days,” he tried to keep his head down and stay focused on the big picture.
“For long-term investors, who have been through several cycles, usually in principle, it’s a good window to invest when people are feeling really down,” he said.
— CNN’s Beijing bureau contributed to this report.