Nov 3 (Reuters) – Tiger Global Management has paused investing in Chinese equities, as it reassesses its exposure to the country after President Xi Jinping’s cemented his grip on power, the Wall Street Journal reported on Thursday, citing people familiar with the matter.
Tiger executives have told others that Xi’s reelection and his stacking of the Communist Party’s leadership with loyalists at the recent party Congress could increase geopolitical tensions and means the country’s Zero-COVID policy will likely continue, the WSJ reported.
The investment firm wants more clarity about issues such as how vigorously China will pursue growth and whether the country will invade Taiwan before investing fresh dollars in Chinese equities, according to the report.
Tiger has only been looking at small set of Chinese companies it knew well, while redirecting focus at opportunities in India and the South Pacific, the WSJ reported, citing sources.
Tiger Global did not immediately respond to a Reuters request for comment. (Reporting by Khushi Mandowara; Editing by Anil D’Silva)