“Hennessee Group LLC will be adding a China-only index (hedge funds with 50% or more exposure to China) as it sees new policies being implemented in China that are as profound to the economic development of China as the socio-economic policy changes made in China during 1978 and 1993”, stated Charles Gradante, Co-founder of Hennessee Group LLC. “The changes coming about in 2014 will require expanded and ‘more open’ capital markets that investors have been demanding for decades before putting more investment capital in China. The new policies will create meaningful opportunities for foreign private equity investments in all sectors especially healthcare and consumer sectors.”
The structural changes in China’s socio-economic policies recently announced will be a boom to the stock market in general and consumer and healthcare sectors in specific are:
- Further opening of financial markets to foreign investment.
- Greater private company competition.
- Increased transparency in capital markets.
- Easing up on “one child per couple policy” will steepen consumer, education and healthcare demand.
- In the next 15 years the population of people over 60 will be 400 million; larger than population of the United States.
- With decades of “one child per couple policy”, children are too few to support financial needs of parents in need of medical services.
- Floating the Yuan so it trades “more freely” is part of the “new normal” and an essential element to capital formation to meet consumer and healthcare demands.
All of the above socio-economic policy changes will present major opportunities for hedge funds and especially private equity investing in medical devices, consumer products and healthcare sectors.
Charles Gradante, Co-founder of Hennessee Group LLC.