Tuesday, September 20, 2011

Decoupled for now!!!!!

This article ratifies the views expressed in my previous
article. I mentioned the India strenth amidst of global
turmoil.The markets are weak but we are something
special. This is a clear India advantage.
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Asia PE funds say region has decoupled from West

tweet0EmailPrint..Topics:StocksEconomy and
PolicyMutual Funds.On Tuesday 20 September 2011,
1:50 PM
By Stephen Aldred and Elzio Barreto
HONG KONG (Reuters) - Rising buyouts between
China and Japan, abundant leveraged debt in the
region and the depth of China's markets mean Asia-
Pacific private equity will continue to outperform the
Western model, leading Asia fund managers said on
Tuesday.
China, the world's second-largest economy, Indonesia
and India were expected to lead returns in the next
three years for private equity investors in the region,
buoyed by booming consumer demand, according to
a survey of fund managers at the SuperReturn forum
in Hong Kong.
China has been delivering returns for private equity of
25 percent to 30 percent the past years and should
experience similar growth in the next two to three
years, said John Zhao, chief executive of China's
Hony Capital.
"Asia is clearly decoupling from Western markets,
even in the private equity sector, and I for one am very
optimistic about the returns you're going to get out of
Asia," said Michael Kim, partner at Seoul-based MBK
Partners.
The greatest threat to private equity investing in the
region came from the wall of capital entering Asia
looking for opportunities, which could pressure returns
in coming years, the survey showed.
Still, despite the abundance of capital available for
investments in China and a slowdown in economic
growth in cities such as Beijing and Shanghai,
investment opportunities remained abundant in the
country's booming hinterlands, Zhao added.
"What we're very comfortable with is that we don't do
bad deals. The only question is how good the deal is,"
said Zhao. "China is restructuring, so if this sector is
not working, another sector will pop up."
Thanks to Yahoo

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