Successful long term investors know that the time to invest in any asset, stock or market is during a time of crisis. It’s been proven over and over again. And after at least a decade, if not more, while we’ve found it hard to negotiate in China due to high prices, regulatory restrictions and/or competitive pressures, the time is approaching when foreign capital, businesses and investors will be welcomed with open arms. This doesn’t happen very often, won’t last very long and may not happen again in our lifetime!
So it’s probably worth saying now, even though it’s a bit early, that the time to invest in China (eg buying a factory, setting up a local office, valuing a JV and/or investing in local companies) is coming quite soon and we should be paying close attention to this. Once the fiscal stimulus kicks in after the current crisis is over, the economy will take off again and it will be too late. You only have to look at what happened after the SARS crisis in July 2003 to see what I mean.
It has been suggested by a few people that I should organise a speculative mission to China for entrepreneurs, investors and businesses who are interested in exploring these short term opportunities (perhaps in May/June if all goes well?). If this appeals to you, please let us know and we’ll be in touch. If not, don’t forget you heard this idea from me first!