Stephen Schwarzman, chief executive officer of Blackstone Group LP (BX), said China offers good long-term opportunities because of the government’s economic management, after a recent economic slowdown proved milder than many analysts had forecast.
The world’s biggest private-equity firm is investing in property projects including distribution centers and a skyscraper in Shanghai, Schwarzman said in an interview with Bloomberg Television today, declining to name them. A Communist Party meeting next month may produce “very substantial reforms,” he said, while visiting Beijing for the groundbreaking of Schwarzman Scholars College at Tsinghua University.
China’s ruling party meets next month to discuss rolling out policies that may limit expansion temporarily while strengthening the foundations of the world’s second-largest economy. Growth accelerated for the first time in three quarters in the July-September period, government data showed last week, as Premier Li Keqiang spurred factory output and investment.
“The Chinese economy has not done what a number of commentators thought it would, which was really slow down enormously,” Schwarzman said in an interview with Stephen Engle. “China is a really good long-term bet. They have smart leaders, they make decisions, they address questions.”
The 66-year-old billionaire is donating $100 million to the $300 million Schwarzman Scholars program at Tsinghua, which will enroll students from the U.S., Europe and countries including South Korea, Japan and India.
Among Blackstone’s recent investments in China, Pactera Technology International Ltd. (PACT) last week agreed to be bought in a deal that values the Dalian-based provider of technology outsourcing services at $645 million. Blackstone bought the Greensborough Plaza mall in Melbourne for A$360 million ($347 million), a person familiar with the transaction said in July.
To contact the editor responsible for this story: Chitra Somayaji at email@example.com