Jan. 22 - China's investment-led economic model has run its course and reform needs to focus on lifting domestic demand, says CITIC's Chairman and CEO Zhang Yichen.
China's economy didn't quite hit expectations for growth to fall to a fourteen year allowance -- that team but tonight wasn't far off is -- cool down inevitable role will the fruits of reform. But the Jews back into the country's growth engine Shang Jin -- It's such evidence you have Citi capital holdings part of China's sovereign wealth fund very nice to have you as you -- many thanks for coming in. I'm. What does China need to do to move this economy forward. China the clear DL Knowles investment drew model has run its course. Now. It needs stream them a lot of forms I think the couple months ago the some of the Communist Party third -- all right the spell and very -- told framework for reform. That's what we need. In the short term I believe the economy. Well will slow down and then that should slogan. Are you talk about that kind of reforms -- but what effect that gonna have on the rest the world what's the -- the best way to invest in them on in these reforms from the outside. Just. I think there's a short term impact -- is a longer term impact. That China has been on the investment drove the next four to a model and you will lol that's you know Lawrence no longer sustainable. And you also you all there to -- who. To move to a domestic consumption driven public growth model. It takes a long time and takes a lot of pain. So in the short term. All of the reform measures -- about some of them actually. -- -- growth Brett. For example clamping down local government spending canceled the fourth. Some of them are pro growth in the sense that the its. Actually deregulation. Allowing. Probably private sector last month. So what what sectors you focus on what what do is he's focused on trying to. We are mostly focusing all service sectors. Because manufacturing sectors. It's characterized by a overcapacity almost every -- you industry. The service sector is. Does you know. Part of the proportional economy is still awfully 6% soldiers a lot of growth so -- and T. Health care. Tourism these are sectors of property is all right. Property as well you you learn about problems in the -- did you how would be at a zoo and -- -- single property. Overall it you know it is probable -- -- Many cities spot on the other hand you some adversity is it is not on the property loses at the end of days the local. Business so we are focusing more wrong secondary cities large regional malls of these ardea. He would -- Worded that cities. Cities like Tom's job hope they'd these -- provincial capitals. That you recently started a multi strategy hedge funds -- -- -- esteem is going to be Chinese money leaves in China where where most of Monica. We are setting and precisely to target. The eventual. Cap awful lot of time -- so we're setting up a platform it's more based around. Asset allocation rather than you know purity output to Oakland at -- expects the other private equity companies not a big invest is doing the same sort of thing. I hate giving you my community many many. Chinese. Well there's are -- the world flaw it you know overseas investment. Okay challenged him and offensive to humans that make it.