The US-China Relationship is at an Economic Crossroads | SALT iConnections NY - YouTube

Opinion  

Weijian Shan, Executive Chairman of PAG on investment advice on China: we avoid hot sectors such as EV, because China has a high savings rate of 54%, according to Macroeconomics, savings rate roughly equals investment rate, therefore investment rate in China is quite high, which means that hot sectors tend to get too crowded with investment, which leads to low profit margin, therefore him firm typically avoid such hot sectors. On the other hand, this high savings rate is not sustainable, because China demographics is turning older, and because of that, the savings rate will drop over the next few decades, and consumption rate will pick up, we expect in next few decades, the portion of consumption in China GDP will go up from ~40% level now to more closer to ~68%, which is the level of consumption in US GDP now, therefore our investments in China is focused on consumer spending sectors.