Buyside: deleveraging in China boosts private markets

Author: Karry Lai | Published: 30 Jan 2019

China’s deleveraging drive is not making private equity markets falter but rather giving them a boost, according to panellists at the HKVCA Asia Private Equity Forum 2019.

The private equity (PE) market in China has seen a tremendous surge in the past few years, but there is still room to grow. Panellists have noticed a trend whereby startup tap funds in the private market then stay private for longer. This is driven by disappointing post-IPO stock prices and pressure from investors to cash out.

The China-specific trend towards deleveraging has also meant that businesses are coming up against a wall...