Heavyweight global investment firms are sticking with China despite a sweeping crackdown
on business by the ruling Communist Party that has wiped $3 trillion off the market value of the country's biggest companies. Even as authorities rip up the status quo for tech, education and other private enterprise, drawing comparisons with Mao Zedong's Cultural Revolution in the process, some of the biggest names in asset management say it's still a good time to invest. They say recent regulatory moves were necessary and overdue, and China's growth story remained attractive.
"The case for China in the long-term is intact," said Luca Paolini, chief strategist for Pictet Asset Management. The firm is an arm of Swiss private bank Pictet Group, which has $746 billion assets under management
Pictet isn't alone. Many of the biggest names on Wall Street, including BlackRock (BLK
), the world's largest asset manager, Fidelity and Goldman Sachs (GS
), are still advising clients to keep buying, albeit cautiously.