Those predicting a hard landing didn’t take into account of the fact that the Chinese government has all of the monetary and fiscal tools at its disposal.
Beijing, China (PRWEB) February 02, 2012
In a bold refutation of prominent China doomsayers including New York University professor Nouriel Roubini and hedge fund manager Jim Chanos, Jack Perkowski, a.k.a. Mr. China, tells China Money Podcast now is a great time to invest in China because the Chinese government will ensure its economy staves off a crash scenario.
“There are a lot of opportunities in China. It’s still very early in the game,” says Perkowski. “Those predicting a hard landing didn’t take into account of the fact that the Chinese government has all of the monetary and fiscal tools at its disposal.”
Perkowski, founder and managing partner at China-focused merchant bank JFP Holdings Ltd., has twenty years of experience investing on the ground in China. He came to China in the early 1990s and founded ASIMCO Technologies Ltd., now one of the largest independent auto component manufactures in China. That pioneer journey made him one of the most successful Western businessmen in China and gained him the moniker, Mr. China. He made the above comments while being interviewed on the latest online episode of China Money Podcast.
Among all the investment potentials, Perkowski favors environmental and energy efficiency technologies, health care and the financial services sector.
“Anything relating to the environment (that) helps improve energy efficiency and reduce emissions (and so on) will be big opportunities, (and) health care, one of the last big industries that’s being opened up for outside investors,” says Perkowski.
“The whole financial services sector will be huge,” Perkowski goes on saying. “China still has a 50 percent savings rate and the insurance sector is growing at 25 percent a year, not because the Chinese are in love with insurance but because they look at insurance as another place to put their savings.”
Those who predict that China will inevitably suffer a hard landing, defined as an annual growth rate below 7.5 percent, underestimate the resources available to the Chinese government to manage the economy.
“China needs to grow at somewhere between 7 to 9 percent (annually) to have an economy to absorb all of the new workers every year,” says Perkowski. Therefore, with social stability top on their mind, China’s leaders will do everything to ensure growth does not fall beneath that key level.
After selling ASIMCO Technologies Ltd., then with sales of over US$500 million, to Bain Capital in 2009, Perkowski founded Beijing-based JFP Holdings in the same year. JFP Holdings helps global companies on their China strategies and assists Chinese companies to develop their global footprint.
About China Money Podcast
China Money Podcast is a top rated audio talk show series focused on investing in China. With prominent guests ranging from China-focused fund managers, economists to analysts, the podcast is widely followed by the investment community in and outside of China. Hosted by Nina Xiang, a Beijing-based veteran financial journalist, the podcast is the source of insights on-the-go for any investors interested in investing in China. The show is available as a free audio download from http://www.ChinaMoneyPodcast.com.