Mr. Lin, a veteran private equity fund manager with 30 years of experience, offers valuable insights into the current state of the Chinese stock market.
Market Fluctuations: Despite ongoing internal and external challenges, Mr. Lin maintains confidence in the market, emphasizing that fluctuations are natural and not indicative of a standstill.
Challenges: The Chinese stock market faces various hurdles, including a lack of investor confidence, an imbalance between the number of listed companies and market wealth, systemic risks, and a focus on financing over returns. Additionally, a recent 30% decline in housing prices has impacted public wealth.
Long-Term Perspective: Mr. Lin highlights China’s growing national power despite foreign pressures. He cites the successful navigation of projects restricted during the Trump era as evidence of China’s innovation and adaptability. China faced obstacles in 35 projects during Trump’s presidency. However, in just a few years, China has overcome nearly 30 of these challenges, showcasing the country’s strong innovation and adaptability in its market.
Future Outlook: While it may take two to three years for the market to stabilize, Mr. Lin anticipates a transition from a cautious “red light” state to a more optimistic “yellow light” phase. He notes China’s globally acclaimed social security environment, contributing to an overall positive outlook.
