According to Reuters, investors are now more interested in Southeast Asian startups as the Chinese market is losing its position due to the Chinese communist regime’s tough lockdowns.
Investors gathered at the private equity and venture capital conference SuperReturn Asia in Singapore from September 19 to September 22 looking for more investment opportunities in this market.
Joel Thickins, a co-managing partner at TPG Capital Asia, told Reuters, “Today, there’s much stronger appetite for India and Southeast Asia.”
Reuters cited a forecast from Google, Temasek, and Bain & Company, saying Southeast Asia’s internet economy is projected to double to $363 billion by 2025.
According to Bain & Company, private equity deal value in the region hit a record high of $25 billion last year.
A noted deal included Singapore-based ride-hailing and food delivery Grab going public on Nasdaq after a $40-billion merger.
China’s economy has had a downturn as strict COVID lockdowns and the real estate crisis keep hitting the country.
And it’s not just private equity and venture capital investment. In terms of other types of investment, China is also losing its appeal as an investment destination.
The South China Morning Post cited data from the Institute of International Finance reporting that China saw capital outflows of $81 billion from February to July.
In contrast with China’s market, as reported by Reuters, emerging markets outside the country posted portfolio inflows of $20.3 billion in equities and $13.5 billion in debts.
Last week, a report from the European Union Chamber of Commerce in China showed the dim outlook of China’s economy as European companies have confidence.
European Union firms say that China’s policy decisions have become “less predictable, less reliable and less efficient.”
The report noted that China was losing “its allure as an investment destination” and that the EU bloc and the world’s second economy were “drifting further and further apart.”