Are India and China the bright spots in the global economy for multinational companies?
Asia in general is still a bright spot. Liquidity is starting to free up globally, so ultimately, people looking for investment returns are going to be drawn to Asia again. China is a relative bright spot–8% GDP growth looks unbelievable compared to the U.S. and Europe. What’s positive for India is the election–that’s a huge boost. India is the sole economy in Asia that isn’t export-dependent. Q: Long term, where will growth come from for companies? A: Hands down, it is Asia. Q: CLSA is known for its feisty research department, which of course can anger clients from time to time. Does it pay off in the long run? A: The U.S. banks approach everything firstly from their own point of view and secondly from a company client point of view, whereas CLSA approaches it from the point of view of its investors, who value the independent point of view. Has it been negative for corporate relations? Yes it has. We’ve never tried to develop a big investment banking division because you inevitably
