Andy Rothman, Investment Strategist at Matthews Asia — Investing in China: Why misperceptions might have you missing out

Show Notes

Summary:

In America, there are a lot of misconceptions about many aspects of Chinese culture and economic policy. These have become especially apparent over the last two years during the Covid-19 pandemic. However, many investors are curious about the opportunities to be found in China’s fast-growing market but while factors like the country’s political structure, ongoing trade wars with the US, and regulatory differences shouldn’t deter investment, it is important to understand the risks involved when it comes to investing in China.

Here to give us an insider’s perspective is Andy Rothman, an investment strategist at Matthews Asia, the largest dedicated active investor in Asia and China in the United States. Before heading to Matthews, Andy spent more than 20 years living and working in China, first as a student, then as an American diplomat. At Matthews, Andy is primarily responsible for developing research focused on China’s economic and political developments.

In this episode, Andy discusses the major shifts that have been happening in the Chinese economy both pre- and post-pandemic, the changing role of private companies in China, and his take on US/China economic policy and regulation.

Highlights:

• A brief history of the modern Chinese economy (03:08)
• The changing role of China’s public companies (04:54)
• How Covid-19 affected China’s role in the global supply chain (07:25)
• China’s shift away from a manufacturing economy (09:47)
• Andy’s take on the status of the Chinese residential property market (11:19)
• Andy describes the easing cycle China is going through this year (16:09)
• Factors that will affect whether Chinese public companies list in China or the US (18:25)
• Andy describes the two “weather patters” occurring in the Chinese economy (21:33)
• Positive steps from the Biden Administration in US/Chine policy (24:58)
• Andy’s take on China’s relationship to the Russia/Ukraine conflict (26:43)
• Wrap Up (28:41)

Links:

ICR Twitter

ICR LinkedIn

ICR Website

Andy Rothman LinkedIn

Andy Rothman Bio

Andy Rothman Twitter

Matthews Asia Website

Matthews Asia LinkedIn

Feedback:

If you have questions about the show, or have a topic in mind you'd like discussed in future episodes, email our producer, [e-mail].

What is Welcome to the Arena from ICR – Conversations with Today's Innovators & Business Leaders?

In the increasingly crowded and competitive corporate and financial ecosystem, it’s harder than ever for companies to break through the clutter and be heard. The media, investors, agenda-driven influencers, even customers and competitors, are defining your business story on their terms. Therefore, it is imperative that companies take control and proactively drive the conversation with stakeholders in an effort to build & maintain equity value.

In Welcome to the Arena from ICR, Co-Founder & CEO of ICR, Tom Ryan, interviews key business and financial players who influence the fate of public or aspiring public companies in the capital markets. As a former Wall Street Journal ranked sell-side equity analyst and the founder of one of the largest strategic communications firms in the world, Tom understands what it takes to navigate this complex environment.

This is a forum for CEOs, CFOs, institutional investors, sell-side analysts, financial journalists, private equity professionals and other financial community participants to share their stories and give advice in an open and candid conversation.

For more information, visit http://www.icrinc.com