China’s stock market has stumbled a bit this year, with the Shanghai Stock Exchange index sliding 5%.
And big Chinese technology companies listed on U.S. exchanges have really tumbled, as China’s government has attacked them verbally and with more onerous regulation.
Online retail titan Alibaba has dropped 57% over the past 12 months, and fellow e-commerce stalwart JD.com has shed 28%.
But renowned investor Howard Marks, co-chairman of Oaktree Capital Management, remains bullish on China’s markets. The distressed-debt specialist said in an interview on Chinese social media platform WeChat that he will “always [be] buying” in China, according to Bloomberg.
“Losing sight of those long-term prospects because of the desire to avoid short-term volatility can result in investors missing out on great opportunities,” he said. “Your entry price matters, and today’s climate should lead to many attractive entry points.”
China’s economy expanded 8.1% last year, up from only 2.2% in 2020, when the Covid pandemic held activity down. But growth totaled only 4% in the fourth quarter.
Strong restrictions to control the pandemic have dampened consumer demand, and the government imposed curbs on real estate borrowing.
The economy will be a central feature of China’s legislative session that begins Saturday, news media report. Most economists surveyed by Bloomberg see China deciding on a growth goal of only 5% to 5.5% for this year, the first sub-6% target in 31 years.
“Stimulating its economy while staying true to the common prosperity, and deleveraging its financial system will be China’s greatest challenge,” Marks said. Common prosperity refers to China’s effort to make the distribution of income more equal in the country.
Oaktree has invested 30 billion yuan ($4.7 billion) in China, the WeChat post said. That includes commitments to the beleaguered real estate industry.
