The dismal regional outlook for private capital, a relatively opaque part of the financing world, is another reminder of the wide-ranging repercussions of a slowing Chinese economy that has affected everything from commodities to stock listings. It also shows the broader impact of aggressive monetary tightening by major central banks, which has pushed up borrowing costs and heightened concerns about debt defaults and a global recession.
Private capital fundraising in Asia Pacific may hit a decade low this year, as investors shift away from China-focused funds, according to London-based research firm Preqin.
Funds raised in the region in the first half of 2023 accounted for 22% of last year’s total, Preqin analysts wrote in a quarterly report. Aggregate capital targeted by China-focused funds fell to US$115.9 billion at the end of the second quarter, from US$141.9 billion in the previous three months.
