As Buffett exits, can China win back Wall Street with own brand o

Chinese regulators are steering the country’s US$4.5 trillion mutual fund industry towards long-term holdings, as foreign investors assess China’s risks alongside thin IPO pipelines.

Beijing’s push for patient capital

China is betting that “patient capital”, rather than quick trades, will shape its next phase of growth.

That policy wager has gained fresh resonance since Warren Buffett stepped down last week after building Berkshire Hathaway into a US$1 trillion empire over six decades.

The shift is being watched against the backdrop of global investor caution towards Chinese assets, with Beijing seeking to frame longer-term investing as part of its growth model.

Wall Street watches the US-China summit

Global investors are also watching this week’s US-China leadership summit for any sign that friction between the two sides may ease.

One question is whether Beijing’s version of Buffett’s value-investing legacy can help Wall Street regain its appetite for Chinese assets.

“The long-term return nature of Berkshire’s philosophy coincides with China’s economic philosophy,” said Tommy Ong, managing director of Hong Kong-based T.O. & Associates Consultancy.

For China, the appeal of the Buffett comparison lies in the emphasis on long-term returns at a time when regulators are trying to reshape fund behaviour away from quick trades.

Source: South China Morning Post