Michael Pettis: State-backed investors fund over 90 percent of China private equity - Traders Union

Michael Pettis: State-backed investors fund over 90 percent of China private equity - Traders Union

Source: Traders Union

DW NOTE

The shift from private equity as a site of independent capital formation to a vehicle for state allocation marks a decisive break from the model that made China attractive to foreign investors in the 1990s. When 90 percent of funding comes from state-backed sources, the "private" in private equity is a taxonomic courtesy, not an economic description.

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