Executives of some large private equity firms are meeting in Hong Kong. Word is they are largely pessimistic about the state of the world economy, but believe that Asia will recover more easily than the rest of the planet.
Both executives agreed that Asia, while getting hit by the financial crisis, was well suited to withstand it, thanks in part to banks’ relative lack of exposure to risky subprime mortgage securities which sparked the global crisis.
Another point is that domestic spending has increased in places like China, softening the downturn of export demand. Economic growth in China is expected to continue at a high level–7 or 8 percent–so, though it is less than the last few years, not even close to recession levels.
Maybe I will stay here in China. As long as the foreign companies stay here, I will have a job. Will they stay? Guess they might if they are selling to the Chinese.