Franklin Templeton’s CEO says China’s pessimism is overhyped. According to Jenny Johnson, president and CEO of global investment management company Franklin Templeton, the notion that investment prospects in China vanish is likely overstated.
At a session at the Forbes Global CEO Conference in Singapore, she said, “There is a lot of pessimism built into the pricing.”
You are discussing the second-largest economy, she said. “You are talking about an economy that produces more engineers annually than any other nation in the world. I believe that innovation will present opportunities.”
Johnson, who oversaw Franklin Templeton’s purchase of Legg Mason in 2020, which resulted in creating a new company with a combined asset base of $1.5 trillion, observes a desire in China for greater energy and food security independence.
You may not time it perfectly, and it might bounce a lot for a while, but when it does, it will be a rubber band back up, she added.
As a result of China’s sputtering economic recovery and tensions with the West, international investors have become less interested in the country, as seen by Johnson’s remarks.
U.S. corporations have complained that China has become uninvestable, citing fines, raids, and other steps that have made doing business there unsafe, according to U.S. Commerce Secretary Gina Raimondo, who observed when visiting China in August.
Johnson further sees prospects worldwide in private credit and secondary private stocks.
I believe it’s an undervalued investment opportunity, she remarked. Many limited partners (LPs) out there are overcommitted, have capital calls, and must sell at a discount.
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