ENTREPRENEURSHIP, INVESTMENT AND GROWTH STRATEGIES: Trends, Investment Patterns and Opportunities for Private Entrepreneurship, Foreign Investment in China and China’s Outbound Investment | Korn Convocation Hall
Wei Guo | Founding Partner, UpHonest Capital
John Ho | Chief Executive Officer, Landsea Homes
Richard Jun | Co-Founder and Managing Director, BAM Ventures
Maggie Sun | Partner, Capital Markets Accounting Advisory - Deals, PwC
MODERATOR: James Rice (B.A. '91) | President and Chief Executive Officer, Solaris Paper, Inc.
The United States and China are experiencing strong and steady economic growth which has been accompanied by increasing cross-border investment. The areas and industries for growth continue to expand and evolve. The 19th Party Congress report calls for “developing new ways of making outbound investments,” and promoting international cooperation, building on the foundation of existing initiatives such as the Belt and Road Initiative. There will be new bright spots for investment for both domestic and foreign individuals as well as corporations with opportunities in the areas of innovation and new technology, improving people’s wellbeing, and green development and environmental protection. Under President Xi, tech and internet entrepreneurship has been encouraged. The 19th Party Congress report also calls for “supporting the growth of private businesses.” Despite the decline of FDI into China, after over twenty years of rapid growth, the report reaffirms that China will not close its door to the world and will become more open, adopting policies to facilitate trade and investment and protect the legal rights and interests of foreign investors. After posting record levels in 2016, China’s outbound investment has also suffered setbacks due to increased scrutiny against suspicious capital outflows and has shifted focus away from the now “restricted sectors” towards the high technology, manufacturing and modern services sectors. Panelists will provide insights on the 19th Party Congress report and the implications for investment in the “restricted sectors” and the need for diversification and new investment strategies and partnerships. They will also discuss opportunities for entrepreneurship and share their perspectives on the governmental policies and initiatives to stimulate economic growth, facilitate entrepreneurship and promote investment opportunities in preferred industries and review the benefits and risks that they present.
FINANCIAL RISK, MONETARY POLICY AND SOE REFORMS: Implications and Opportunities for Business | C-315
Steven Foland | Managing Director and Head of Banking, Americas, CICC
Christine Loh | Chief Development Strategist, Institute for the Environment, Hong Kong University of Science and Technology; Former Under Secretary for the Environment, Hong Kong S.A.R. Government
John Simonson | Principal, Financial Services Regulatory Practice, PwC
Huimin Jenny Zhan | President, Good Hope USA Consulting Services (an affiliate of CreditEase)
MODERATOR: Philip Hurst | Senior Vice President, Director of Wealth Management and Premier Banking, Cathay Bank
The Chinese economy faces many challenges and risks as it seeks to balance growth and reform, including rising debt levels, low investment returns and asset bubbles which will have ripple effects on China’s GDP performance. Preventing systematic financial risks has been the focus of Chinese leadership. The IMF forecasts that the non-financial sector debt in China could rise to over 290 percent of GDP by 2020. To address the issue, the 19th Party Congress report calls for “deepening institutional reform in the financial sector.” A new super regulator will also help to improve risk management. However, there are concerns that a tighter policy environment could weigh on growth. The RMB, which experienced sharp fluctuations, now serves as a global reserve currency and the government is seeking further reform to reduce market interventions and improve the availability of RMB assets. President Xi emphasized the importance of deleveraging state-owned enterprises (SOE) which have been the main beneficiaries of easy credit and the major source of bad debt, as a main priority, including enhancing SOE competitiveness and efficiency through market-oriented reforms, mixed ownership reform and reducing excessive production capacity. Panelists will provide their reactions to China’s performance in balancing growth and reform and share their predictions on the expansion of SOEs and impact on private investment. They will also discuss whether a tighter policy environment could weigh on growth in the world’s second largest economy, implications as well as opportunities for business and what this could mean for the United States and the world.
REAL ESTATE: The Importance of Diversification, Localization and Community Engagement | C-301
Theresa Kwang | Executive Director of Finance, SCG America
Chang M. Liu | Executive Vice President, Chief Lending Officer, Cathay Bank
Roger Moliere | Senior Advisor, Real Estate Practice, Manatt, Phelps & Phillips, LLP
MODERATOR: Gregory J. Karns | Partner, Institutional Investment & Finance, Real Estate, Cox Castle & Nicholson LLP
U.S. real estate markets have been a top destination for Chinese investors seeking capital diversification and risk mitigation. Much of the money has fueled development in the U.S. However, China’s new set of restrictions on outbound capital flow, making it more difficult to purchase U.S. real estate is expected to negatively impact real estate across a variety of sectors, including residential, commercial and hotel. There has also been more scrutiny by regulators. Limitations on transfer of capital overseas, foreign buyer restrictions, taxes in key markets, and a predicted slowdown of the Chinese economy all present barriers to Chinese investment in the United States. However, investors are now pivoting to different sectors, such as hospitals, education and acquisitions of preschools and student housing. What are the emerging investment trends in the real estate sector? What are the new opportunities and pivoting plays? Panelists will share their insights on emerging trends and opportunities in the sector over the next few years. They will address the importance of diversification, localization and community engagement and discuss some of the challenges that are influenced by the global economic environment, legal and tax considerations and share their perspectives on the future of Chinese capital inflows to the U.S. real estate market.