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Dry Powder: The Private Equity Podcast

Lessons from China’s Reopening: The Micro View

What are the risks and rewards of investing after a lockdown? Bain’s Kiki Yang shares leading indicators from Asia.

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Lessons from China’s Reopening: The Micro View
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On the previous episode of Dry Powder, Bain’s Kiki Yang revealed how China’s economy was springing back to life at a startling speed. Should investors follow suit? That’s the question we explore in Part 2 of our conversation on China’s reopening.

“As the restrictions are being lifted, we have seen various funds are becoming quite active,” Kiki explains to me. “There's no shortage of opportunities and no shortage of capital for people who are willing to invest.”

“Willing” is the operative word there, because the behaviors that emerged under lockdown are still very much in flux. They can vanish as quickly as they came, or pop up in one subsector while passing over another. It has injected an element of uncertainty into even the most battle-tested strategies.

On today’s show, Kiki and I discuss the risks and rewards of investing after a lockdown. How are PE firms in China’s forging ahead? What  investment themes are investors seeing there and which ones might apply to other markets around the world?

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