Private equity in China has faced significant challenges in recent years, including a property downturn, a sluggish economy, low consumer confidence, and the effects of regional geopolitics. These factors have led to a reduction in investment in Chinese companies to US$68.80 billion in 2023, the lowest in five years according to Mergermarket data. For long-term investors, however, now may be an opportune time – regulatory reforms, technological advancements, ongoing energy transition, and reasonable valuations with less competition -- savvier investors are taking note. Our panel of seasoned private equity investors will delve into the current landscape and future prospects of private equity in China.

• How have private market investors adjusted their China strategies in the past year? Where does China fit within a global portfolio?
• Will the "China +1" strategy remain feasible? How has this strategy evolved in response to changing dynamics?
• What is the outlook for valuations considering the anticipated increase in buyouts and take-private transactions in China?
• Can RMB-denominated funds fill the void left by USD vehicles? What challenges and opportunities do RMB funds present?

China has emerged as leading light in the green industries globally. Chinese EVs has dominated the market for electric vehicles in terms of production and innovation. This has translated into strong sales domestically and internationally. With the local government’s continued regulatory push for commercial efforts in other green industries, China is expected to play a key role in the world’s transition to clean and sustainable energy. How can investors from across the globe take advantage of this unique knowledge to benefit their companies, consumers, LPs and the environment. Our panel of green industry insiders share their views.  

• Will this knowledge sharing create long-term growth for regional GPs to adapt their green portfolio?  
• What has prompted the increased popularity of ESG strategies and carbon neutrality funds amongst local GPs? 
• Is it too late for international GPs and LPs to tap into the world’s biggest electric vehicle and battery industry? 
• What are the main concerns regarding the tariff threat to China's far ahead green product? Is it overcapacity, or underconsumption?

Chinese fund managers are eyeing overseas expansion to diversify geographical focus and regain their appeal to international LPs. Using the skillsets honed over several fund cycles investing in Chinese companies and leveraging their access to Chinese entrepreneurs, Chinese GPs are using their strategic advantage into such sectors as consumer products, advanced manufacturing, and technology. However, pivoting into new and complex markets comes with its own set of challenges, which our panel of international investors will discuss.  

•  What is the competitive edge of Chinese GPs investing overseas?
•  What strategies are GPs using to effectively navigate new markets and deliver alpha?  
•  How are LPs responding to the change in strategy?
•  A case study of a successful international deal  

Consumer confidence is yet to recover fully, but it is also par for the course. China's economic recovery is losing momentum and while consumer sentiment continues to be cautious, investors are still optimistic on China's transition to a consumption-centred economy. China is focusing on developing the economic potential of its huge internal market to power consumption and a significant increase in the size of its digital economy will unleash long-term growth potential. Our diversified panel of investors will share their expertise on consumer trends in the hottest sectors.

• How will China economic near-term challenges such as recession and deflation impact consumption? 
• What are the key elements to sustainably drive consumption growth in the medium to long term?
• Where are the best opportunities for investors in the Chinese consumer space? 
• Can China’s property downturn have a silver lining for consumption? 

It is a challenging time for exits, especially those of Chinese. With no clear path to an IPO and M&A exits to the usual sources usually obstructed, sponsor-to-sponsor sales have come to the fore. Beyond that, GPs should also explore alternative sources of liquidity, with continuation vehicles, cross-fund transactions, secondaries and NAV financing increasing on the agenda. GPs and LPs give their take on how best to realise returns in these trying times. 

• Sponsor-to-sponsor sales led the way in other parts of Asia. Will it be the same in China?
• What is the demand-supply dynamic behind single-asset continuation funds?
• How are investors addressing conflicts of interest tied to alternative liquidity?
• What the most attractive for Chinese PE-backed IPOs?  

It is a difficult time, globally, to be raising capital for new funds. This is particularly true for China-focused funds. No longer the darling of the pensions, endowments and other investors that have funded them in the past, Chinese GPs now search for different pools of capital and a new investor base that can allocate beyond the problems of today. Our diversified panel of investors will take stock of the current situation and contemplate strategies for fundraisers to ponder.

• What do Chinese funds really need to do to fundraise? 
• What are the global LPs’ short-term and long-term assessments of China given the current climate?
• Are Middle Eastern LPs the solution for Chinese GPs?
• Are RMB funds a natural pivot? Can international investors participate?