Gulf financiers bet on 35% returns from Chinese assets on stimulus expectations
‘If you want growth, you have to be in this corridor from the near to the Far East,’ Gulf Capital CEO says at China-UAE summit during Abu Dhabi Finance Week
Gulf financiers expect investments in China to return up to 35 per cent next year based on bets that Beijing will implement additional stimulus measures, according to speakers at a summit in the United Arab Emirates (UAE).
“Our portfolio companies are growing, and we’re pushing our way into Asia, and we are very encouraged by the growth prospects in Asia,” Karim El Solh, co-founder and CEO of Gulf Capital, said on Tuesday during a panel discussion at the China-UAE summit taking place during Abu Dhabi Finance Week (ADFW).
Gulf Capital, the largest private-equity firm in the region, invests across several asset classes including private equity, growth capital and real estate.
“I tell my global investors, if you want growth, you have to be in this corridor from the near to the Far East,” he said. “We’re creating this new silk road. So we’re very encouraged by the growth prospects in China and broader Asia.”
China’s capital market will grow by 35 per cent next year if aggressive economic stimulus measures come through, but only by single digits without those measures, El Solh said.
Other panellists shared his view, including Ethan Chan, chairman of Arte Capital Group, a multi-strategy asset manager headquartered in Hong Kong.
“[There are] a lot of opportunities in China, with the tumble after three years from 2021, the valuations have become very attractive, and also with the recent supportive measures by the central government,” he said “We take a very bullish view and see the market has stabilised and has very good potential upside.”
