Look to Japan for “high-quality alpha” amid the uncertainty of the market, investors say

Investors searching for “high quality alpha” in Asia for the next six to nine months, according to Lincoln Pan, a partner and co-head of private equity at PAG, an alternative investment firm focused on Asia. Considering China’s uncertainty, we should look at India and Japan. .

“I think we need to understand India, especially in this part of the world, and what’s going on in that market,” Pan said in CNBC’s Emily at the “Delivery Alpha” event in Hong Kong last month. -Telled to Tan.

“The most powerful thing to support the Indian market at this point is the growth of domestic stocks flowing into the domestic stock market,” the investor said, adding that India “has “immense amounts of stocks that have been exacerbated by the market capital flows. It has fundamental growth.”

Bread looks at private equity spaces in India – Home to the new generation of super wealthy people – As a “growth area.”

Elsewhere, the rapid-growing interest in artificial intelligence and the ripple effects on infrastructure require investors to consider “renewable energy development (and data center development in Japan and Southeast Asia,” he adds Ta.

China’s concerns

Despite hopes and speculation among investors about China’s recovery, Pan said it must wait “until there is a sustained government stimulus to drive the consumer economy.”

“If you’re looking for Alpha, I think it’s very difficult to find that I’m a Daihua right now,” Pan told CNBC’s Sunburn.

China has been striving to drive economic growth as real estate recession and uncertainty about future revenues continues to compare consumer spending with business trust Deflation concerns.

The second largest economy in the world 5.4% expansion In the final quarter of 2024, stimulus gusts pushed the economy to meet Beijing’s growth targets, exceeding forecasts.

However, some economists have suggested that China’s recovery may not be as rosy as the headline numbers suggest. DEFLATION specter US President Donald TrumpIt will impose an additional 10% tariff on Chinese imports.

Kang Yi, China’s director of national statistics, previously warned that “the disadvantageous effects of external factors may deepen” this year.