Nouriel Roubini's Advice for Investing in China

REPLAY VIDEO
Your next video will start in
Pause
  • Info

  • Comments

  • VIDEO TEXT

Nov. 7 (Bloomberg) –- In today's "Global Outlook," NYU Stern School of Business Professor Nouriel Roubini takes a look at China's economy and fiscal reforms on Bloomberg Television's "Street Smart." (Source: Bloomberg)

Streaming on your tablet, your phone, and bloomberg.com.

China's meeting of the communist party is scheduled to begin november 9. our closer, nouriel roubini, was just in china, where the president and premier confirm that china has a plan for comprehensive reforms for the country.

They told you this is going to be a big deal.

Yes.

They spoke specifically about economics, financial, social, political, ecological reform.

There will be a big meeting about which kind of financial reforms, which reforms of the state owned enterprise system, which kind of fiscal and regional reform as well, and what to do about the environment.

They are now stressing the quality of economic growth, not quantity.

Whenever you go to beijing, the economic is so terrible that it is really sickening.

Pollution of air, water, land, food safety.

The average middle class cares about economic -- safety.

It is so bad that [indiscernible] are leaving.

The good news is that they're leaving beijing, so they took care of the health of themselves and their families.

What can we expect from these reforms?

Can we expect better, cleaner data?

Stronger human rights?

Can we expect real change as far as the economy is concerned, or is a per -- it a progressive thing?

They realize that to rebalance the economy -- they have to much fixed investment and too little private consumption -- that model of doubling down on fixed investments leads to a hard landing.

There are plenty of forces resisting reform.

State owned enterprises, provincial governments him a pla -- governments, pla.

What do you say to people who are looking at china as an investment opportunity?

I would say the reforms they will announce will be in terms of hard-line risk on the upside, so there will be a rally of chinese equities.

And limitation will occur much more slowly than people realize, and there will be disappointment down the line.

In china, the best companies are not listed in public markets, but they are the smaller, private companies that are not in the public market.

Unless you go into private equity in china, and you're not going to be able to find them.

The best thing in china is to be having exposure to large, multinational perforations --

This text has been automatically generated. It may not be 100% accurate.

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change