China’s economy may be slowing at the moment, but investors shouldn’t count the Asian giant out in the long run, the chairman of a multibillion-dollar Chinese conglomerate said Wednesday.
Fosun International’s Guo Guangchang is sometimes referred to as China’s version of American billionaire investor Warren Buffett. While the “Oracle of Omaha” has often said not to bet against the United States, Guo said he “of course” feels the same way about China.
“I fully believe in the huge potential in China,” Guo told CNBC’s Nancy Hungerford at the World Economic Forum in Davos, Switzerland.
Guo acknowledged the “downward pressure” facing the Chinese economy, but he maintained he is “bullish” in the long term. “China has a lot of private enterprises, so much innovation,” he said.
Last year, the country’s gross domestic product grew at 6.6 percent, which was the slowest pace since 1990. Authorities have boosted liquidity in the market and signaled further stimulus measures to cope with the slowdown.
Yet Guo maintained he’s confident in the long term, saying China’s “fundamental” driver of growth is a strong work ethic — and not, as some critics have claimed, that it “stole something from someone.”
“I am really happy that the drive and desire among Chinese people to have a better life remains intact,” he said.
“That’s why our biggest investments are always in China,” Guo said.
According to the company’s website, Fosun International’s total assets exceeded 560 billion yuan ($82.45 billion at today’s exchange rate) as of the end of 2017.
—Reuters and CNBC’s Huileng Tan contributed to this report.