Investors Encouraged to Focus on India and Japan Amid Chinese Uncertainty
Investors searching for quality alpha in Asia over the next six to nine months should consider India and Japan, especially in light of the ongoing uncertainty in China, according to Lincoln Pan, partner and co-head of private equity at PAG, an Asia-focused alternative investment firm.
Pan emphasized the need for more discussion regarding the Indian marketplace during an interview with CNBC's Emily Tan at a "Delivering Alpha" event in Hong Kong last month. He stated, "The strongest thing supporting the India market at this point is the growth of domestic equity flowing into the domestic equity markets," and noted that India is experiencing a "tremendous amount of fundamental growth compounded by capital flows in the market."
He described the private equity sector in India, which is witnessing a rise in super-rich individuals, as "an area of growth."
On another note, Pan pointed out that the increasing interest in artificial intelligence is impacting infrastructure investments. He recommended that investors look at renewable energy and data center development opportunities in Japan and Southeast Asia.
Despite the optimism surrounding potential recovery in China, Pan mentioned that actual progress would depend on the government's sustained stimulus measures to revive the consumer economy. He concluded by stating, "If you're looking for alpha, I think it'd be very challenging to find right now in Greater China."
