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China Pitches 'Patient Capital' to Win Back Wall Street After Buffett's Exit
Chinese regulators are steering the country's US$4.5 trillion mutual fund industry toward long-term holdings, betting that patient capital will define the next phase of growth as foreign investors weigh risks against a thin IPO pipeline.
The shift has taken on fresh relevance after Warren Buffett stepped down last week, closing out six decades in which he built Berkshire Hathaway into a US$1 trillion empire.
Beijing's campaign to promote long-term holdings is being watched for whether it can revive foreign appetite for Chinese assets. Global investors are monitoring this week's US-China leadership summit for any sign that friction between the two economies is easing.
Tommy Ong, managing director of Hong Kong-based T.O. & Associates Consultancy, said the long-term return character of Berkshire's investing philosophy aligns with China's own economic approach.
The pitch lands against a backdrop of caution: overseas investors continue to weigh the risks of Chinese assets against a thin pipeline of initial public offerings.